Industry wage and employment negotiations successfully concluded.

On Thursday, 21 October 2021, SEIFSA on behalf of the affiliated Employer Associations signed an agreement with NUMSA ending a three-week strike after the deal had already been signed with Solidarity and UASA. MEWUSA and SAEWA signed the deal on 22 October 2021, thereby ensuring a complete representation of all the trade unions as signatories to the new main agreement covering terms and conditions of employment for a three-year period commencing 1 July 2021 and ending 30 June 2024.

This agreement followed a difficult negotiation and dispute-resolution process which comprised many formal, informal and bilateral meetings, commencing in May and ending with NUMSA signing the Settlement Agreement ending a three-week strike.

SEIFSA believes that the agreement contains the following direct benefits to the membership:

The employer negotiating team managed to secure a three-year wage deal. This guarantees industrial relations peace, certainty, and stability for all member companies from now until 30 June 2024.
The wage increases, calculated on the scheduled rates and awarded as a rand and cents amount for next July and again in 2024 are clear and unambiguous – they are not dependent on further negotiations, and strike action on the increases is not possible. Member companies now know precisely what their employment costs will be for the coming three years, and have an opportunity to manage these appropriately.
Notwithstanding considerable pressure brought to bear by the unions (in particular, NUMSA), SEIFSA succeeded in securing a key principle that wage increases must be calculated on the scheduled rates as contained in the agreement and awarded to employees as a rand and cents amount.
Finally, SEIFSA and all the trade unions have, as a fundamental element of the agreement, recommitted themselves to pursuing extension and gazettal of the agreement to all non-party employers and employees in the industry and as part of this commitment, have agreed to a special phase-in dispensation for employers, who have been operating outside of the main agreement collective bargaining arena.

Wages

Wage increases and date of implementation

The agreed wage increases (ranging from 5% at Rate A to 6% at Rates F, G, and H) are detailed in the wage tables. These increases will become effective from 1 July 2021, and member companies are urged to implement these as soon as possible.
Please note: the rand and cents increases to employees are based on the rand and cent amount calculated on the scheduled rate per category (i.e. Rate A, B, C, etc.) of employment, regardless of how much more an employee may be earning above the minim scheduled rate of pay.

Please also note: back pay must be calculated on the normal hourly rate and includes overtime hours, work performed on a Sunday, and shift work.

Effective from 22 October 2021, employees covered by the Main Agreement shall be paid not less than the rate he/she was receiving prior to 22 October plus, as a guaranteed personal increase, an additional rand, and cents increase (calculated on the minimum rate) for his category of work.
Increases awarded prior to 22 October may be offset against the final agreed rand and cents increases.
Employees who received no increases on or after 1 July 2021 shall be entitled to receive the full quantum of the rand and cents increase calculated on the minimum rate with effect from 1 July 2021.
An employer must consult in good faith at the plant level with the representatives of the officials of a trade union and/or elected shop stewards on when the back pay will be paid.
The union officials shall make themselves available to meet with an employer and where not available then the employer must consult directly with the elected shop stewards.

Wage increases on 1 July 2022 and 1 July 2023

SEIFSA and the trade unions have agreed that the wage increases for both 1 July 2022 and 1 July 2023 will be w calculated on the same basis as year one of the agreement.

Download The wage tables for years 1, 2, and 3

Wage Exemptions

The industry’s current wage exemption procedure continues to apply. A company that is unable to implement the agreed wage increase, leave enhancement pay, and/or backpay may submit an application to its local regional council for an exemption to implement lesser wage increases than those negotiated.

Please note: any exemption application must be lodged with the Bargaining Council upon 30 days of the signature of the Settlement Agreement.

This exemption questionnaire must be used to apply for any exemption.

Secure your seat:The New Main Agreement 2021 – 2024 “A unique new wage deal!”