The implementation of industry increases effective 1 July 2023 to 30 June 2024 marks the end of the three-year deal struck in 2021. The three-year deal concluded in 2021 was a watershed agreement that saw the reintroducing of the awarding of increases on rands and cents, an introduction of a special phase-in dispensation, primarily aimed at companies who have been operating outside of the scope of the main agreement since 2010 (although this arrangement is available to all employers in the industry) and finally, the gazettal and extension of the main agreement to all employers and their employees.
Wages Increases
As was the case in 2021 and 2022 wage increase in 2023 are awarded as a rand and cents amount. The rand and cent amounts are calculated on the industry’s minimum gazetted rates of pay and awarded to workers actually rate of pay per hour (e.g., the minimum rate of pay for a Rate A worker is R 93.44, the agreed percentage increase is 5%, this equates to a R 4.67 adjustment, which is awarded to a Rate A worker’s actual hourly rate).
Special Phase-in dispensation
This phase-in dispensation is available, on application, to all employers in the industry and was specifically designed to cater for employers who have were operating outside of the scope of the agreement since 2010 (i.e., the last time the Main Agreement was gazetted). This dispensation sets a target for employers to achieve 60% of the 2020 rate by 30 June 2024. At Rate H this amounts to R 29.73 per hour.
Wage Exemptions
The industry’s current wage exemption procedure continues to apply. Any company which is unable to implement the agreed wage increase, leave enhancement pay obligations and/or any other relief sought from the main agreement, is entitled to lodge an exemption with the Regional Bargaining Council with which the company is registered.
Any company requiring any clarification, information, wage tables etc., on the above is invited to call me direct or email me at lucio@seifsa.co.za
Lucio Trentini
Chief Executive Officer