NEWSLETTER4/2010
TO ALL EMPLOYERS
CAPE PENINSULA, BOLAND AND MALMESBURY AREAS
INCREASED WAGES, BENEFITS, BONUSSES AND LEVIES
I am pleased to announce that the parties to the Council have successfully and amicably concluded their negotiations for increased wages, benefits and levies, which are to become applicable on 1 November 2010. The increases have been negotiated for a three year period ending 31 October 2013.
The general increase amounts to 8% as a cost to employer for each of the next three years. However, the employer parties and the trade unions have agreed that the various areas, within the jurisdiction of the Council, should reach parity, as far as wages and benefits are concerned, within certain periods of time. The result of this is that the Boland and Malmesbury areas will be subjected to higher percentage increases compared to the Peninsula area.
There will now be four areas within the Council’s area of jurisdiction as from 1 November 2010. “Area A” will comprise of the magisterial districts of The Cape, Wynberg,Simonstown, Goodwood, Mitchells Plain and Bellville (including Kraaifontein and Brackenfell), “Area B1” means the Magisterial Districts of Kuils River, Somerset West and Strand; "Area B" means the Magisterial Districts of Paarl, Wellington and Stellenbosch, and "Area C" means the Magisterial District of Malmesbury.
“Area B1” will reach parity with “Area A” in the third year. “Area B” will reach parity with “Area A” in the sixth year and “Area C” will reach parity with “Area A” in ninth year.
The minimum prescribed basic wages for the next three years will be as follows (all rates per hour):
Cape Peninsula (Area A )
Artisan / R44.59 / R48.16 / R52.01
General Worker / R20.19 / R21.81 / R23.55
Labourer / R13.02 / R14.06 / R15.18
Boland (Area B1) – Kuilsriver, Strand, Somerset West
Category / 1 Nov 2010 / 1 Nov 2011 / 1 Nov 2012Artisan / R40.34 / R45.83 / R52.01
General Worker / R17.81 / R20.48 / R23.55
Labourer / R11.48 / R13.20 / R15.18
Boland (Area B) - Paarl, Wellington, Stellenbosch
Artisan / R39.23 / R43.47 / R48.16
General Worker / R17.21 / R19.19 / R21.40
Labourer / R11.09 / R12.37 / R13.79
Malmesbury (Area C)
Artisan / R35.17 / R39.12 / R43.53
General Worker / R15.36 / R17.16 / R19.18
Labourer / R9.88 / R11.04 / R12.34
Please also note that those workers who already earn in excess of the minimum prescribed wages, must be granted an increase in basic wages equal to the monetary increase in the minimum prescribed wages. E.g. in Area A, if an artisan currently earns R50.00 per hour and the increase in basic wages and the minimum prescribed wage was increased from R41.68 (the current minimum prescribed wage) to R44.59 (the minimum prescribed wage as from 1 November 2010), which is R2.91 more, such an artisan’s basic wage will increase by R2.91. This applies to all categories of employees in all the areas within the Council’s area of jurisdiction.
ANNUAL STATUTORY BONUS
The annual statutory bonus has been increased from 12 days to 15 days, and, as in the past, these monies will be paid to the Council together with all the other funds. The contributions to all the other funds have been increased in proportion to the wage increases.
LABOURERS/GENERAL WORKERS
Employers are reminded that when a labourer has accumulated 250 daily labourer category benefit contributions, he/she must be promoted to a general worker and be paid as such.
Before employing a worker as a labourer, it is important that an employer verifies with the Council whether that worker has not already qualified as a general worker or has already accumulated a number of labourer benefit contributions which would mean that he/she might have to be promoted to a general worker quicker.
OVERTIME
Please note that payment for overtime worked in terms of clause 9(2) has been changed from one-and-one-third to one-and-a-half.
LIVING-OUT-ALLOWANCE
As from 1 November 2010 the daily living-out-allowance in terms of clause 6(b) of the Collective Agreement has been increased to R77 per day.
INCLEMENT WEATHER AND SHORTAGE OF MATERIALS
Clause 9(a) has been amended to include inclement weather and now reads as follows:
9Lay-off and suspension:
- An employer shall be entitled to lay off an employee temporarily-
- on account of inclement weather oron account of a shortage of materials, due to circumstances beyond the employer's control: Provided that the employer shall pay the equivalent of two hours' wages for short notice before the lay-off period commences;
- on account of a temporary shortage of work: Provided that one day's written notice shall be given, and that such notice include the reason for the lay-off and the period of the lay-off: Provided further that the employer shall not be liable to pay the employee any remuneration except as specified above during a lay-off:
WAGE SCHEDULES AND BENEFIT CONTRIBUTION REQUISITION FORMS
These are available at the Council’s offices and on the Council’s website
HENRY STRYDOM
SECRETARY 21 SEPTEMBER 2010
All correspondence to addressed to the Secretary
133 Voortrekker Road, Bellville, 7530 • Private Bag X29, Bellville, 7535 • Tel.: 021-950 7400 • Fax: 021-950 7405
Email: • Website:
Registered under the Labour Relations Act No. 66 of 1995