After many months of haggling, and threats of massive strike action, Numsa and the auto employers have agreed to a new three-year agreement. The agreement will expire at the end of June 2007. Here are the main new rights won in the agreement.
1. Wages
Across the board increase of 4,4% plus a 3,1% improvement factor. So all workers will receive a 7,5% wage increase on their actual rates of pay.
New hourly rates until the end of June 2005 are:
Skill level
Entry rate 2004
Qualifying rate 2004
Entry rate 2005
Qualifying rate 2005
1
20.94
23.34
22.58
25.09
2
23.26
25.93
25.09
27.88
3
25.66
28.82
27.88
30.96
4
28.72
32.02
30.96
34.42
5
31.30
35.56
34.42
38.24
6
N/A
42.69
N/A
45.89
7
N/A
51.23
N/A
55.07
New rates for year two and year three of the Agreement:
Year Two:
If the inflation rate for the year between May 2004 and May 2005 is:
4% or higher, the across the board increase will be CPIX + 1%
3,9% or lower, the across the board increase will be 5%
Year Three:
If the inflation rate for the year between May 20054 and May 2006 is:
4% or higher, the across the board increase will be CPIX + 1%
3,9% or lower, the across the board increase will be 5%
2. Severance pay
0-10 years – one week per year of service (as per current agreement)
11-20 years – two weeks per each completed year of service
21 years and above – three weeks for each year of service.
3. Work Security Fund
The existing rules of the Fund will continue. Under these rules every auto employer must contribute five cents per normal hour worked into the Fund. The money in this Fund must be used to pay for retraining for retrenched workers.
This year the parties have also agreed that:
40% of each auto company’s current share in the Fund will stay in it. The current rules will say how this money can be used.
50% of each auto company’s current share in the Fund will be allocated to each individual auto company for them to use according to the Fund’s rules.
10% of each auto company’s current share will be allocated to a separate budget in the Fund. The Trustees of the Fund will decide how to use this money.
All future contributions into the Fund will be allocated in the same way.
The committee may decide to channel all or some of the next 12 months Fund contributions into a dedicated fund for those workers who are forced to do short-time.
All of these decisions will be implemented by the end of September 2004.
4. Maternity leave
Women who have three months service will be paid for four months while they are on maternity leave.
5. HIV/Aids
If companies do not have HIV/Aids programmes, they must jointly develop ones that provide information and education on how to prevent the pandemic. Programmes must also ensure that all employees have access to health insurance or medical aid and these must provide anti-retrovirals and other appropriate medication for HIV sufferers.
6. Prostate testing
All men can have free prostate cancer tests just as women are entitled to free pap smears???.
7. Training
Adult basic education will be provided during working hours.
If it is provided in a worker’s own time, the worker will get full pay (half will be paid by the employer and half by the Work Security Fund).
8. Shop steward allowance
By the end of September this year, the parties will develop a shop stewards training programme.
Once shop stewards complete this programme they will get an allowance of up to 10% of the rate that a qualified person on Skill Level 4 earns. (ie 10% of R34.42).
If the company fails:
to provide the training by the end of December 2004 for current shop stewards or,
within two months of the election of future shop stewards,
then the company must pay the allowance automatically.
The allowance will only be paid while the shop steward remains in office. If s/he is voted out or removed, s/he will not receive the allowance.