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Agreement Between Numsa And Mibco

Numsa requested that the Council meet to reconstitute itself, ratify the collective agreement signed by the RMI – whether accepted or rejected – and that RMI cease to interfere in the process of appointing the Secretary General of the Council. RMI Chief Operating Officer Jan Schoeman said RMI was part of Mibco`s important role in regulating employment conditions in the automotive industry. RMI alone cannot ratify the collective agreement, he said. In addition to raising wages, the agreement also provides for an increase in allowances. Both the child care allowance and the appeal allowance will increase by 6% this year and by 5.5% over the next two years. “The RMI finally put Numsa on terms to sign the agreement to avoid further delays,” Schoeman said. Since August last year, NUMSA had insisted that a new collective agreement be increased by 12%, until the end of the 2016/19 collective agreement. Employers were only willing to offer a 5% increase. Hlubi-Majola said RMI, which represents about 40 percent of the auto industry, failed to comply with the 8% wage agreement reached in January 2019. The agreement was finally signed on January 24.

Under the agreement, each worker who works in component manufacturing at different levels of pay will increase their wages by 7.5% this year, 7% in 2021 and 7% in 2022. The march will take place on Monday, November 16 at 9 a.m. We call on all workers in the security sector to support the march in their numbers. The collective agreement is a first for the sector and we must not allow a group of greedy selfish employers to seize the benefits for which generations of workers have fought. When employers refused to defend themselves, NUMSA officially activated the dispute resolution mechanism in September. They warned that if no favourable agreement was reached, they would launch a strike action with the potential to cripple the automotive industry, an already poorly classified sector. These workers had not received a pay increase since August 2016, when the previous collective agreement was signed. Since then, a rise in fuel prices of almost 30% and the resulting rise in the prices of other raw materials have reduced the purchasing power of their wages.

This sector represents workers in component companies, gas stations and car dealerships and employs approximately 306,000 workers. The transaction agreement, signed last week by the majority of NUMSA regions, is applicable from the date of publication and renewal and expires on August 31, 2022. However, the RMI recommended that its members implement the agreement as of December 1, 2019. Schoeman added that Mibco was convening a meeting of city councillors to make a decision on the agreement. “RMI is in compliance with the agreement reached in January 2020 and will ask its members to implement it immediately as soon as it is ratified by Mibco and published by the Ministry of Labour in the Government Scoreboard,” Schoeman said. He also said that the agreement had not been signed in January 2019, but in January 2020, after RMI had requested Numsa`s signature. For other workers in the automotive industry, their wages will increase by 6% this year and by 5.5% per year over the next two years of agreements.