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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Metal and Engineering Industries

Extension of the Consolidated Main Collective Agreement to Non-parties (for the period 1 July 2021 to 30 June 2024)

Part 2

5. Annexures

Annexure K - National Exemptions Policy

Criteria for Exemption

11. Ship Building / Repair Exemption

 

Employment in terms of a contract of employment that specifies that employment is for the duration or portion thereof of a specific contract secured by the employer to carry out repairs on a particular vessel.

 

Ship Building and Ship Repair Exemption

 

1. An employer engaged in ship, oil rig and related vessel building and/or repair activities, whether undertaken on ships, oil rigs or related vessels, in a ship- yard, or in an establishment not situated in the shipyard but directly related to and directly associated with such activities, may apply to the bargaining council for exemption to A apply the bargaining council’s package rate exemption or any other form of wage exemption to employees engaged on Limited Duration Contract of employment that specify that employment is for the duration or portion thereof of a specific contract secured by the employer to build or to carry out repairs on a particular vessel, ship or oil rig.

 

2. The provisions of clause 1 shall be limited in its application to employees engaged in ship building and/or repair activities only and shall not apply to employees engaged in a workshop on Main Agreement activities.

 

3. Any employee engaged on a LDC in a workshop on Main Agreement activities who is subsequently redeployed to undertake ship building and/or repair activities in terms of a new LDC may be so employed on a package rate exemption or any form of wage exemption as applied for by the employer whilst so employed in these activities.

 

4. The parties engaged in a ship building or ship repair project may choose to enter into a Project Labour Agreement (PLA) or equivalent agreement regulating specific conditions applicable to the project in terms of the provisions of Annexure H of the Main Agreement or apply for exemption to apply the visions of the Annexure.

 

5. In the event of inclement weather being of such serious nature as to prevent any ship building or repair work being undertaken anytime during the first four hours of work, then that work should continue under cover. Where this is not practically possible, then four hours’ wages will be paid to the employees concerned.

 

6. Subject to 7 below, employees engaged on limited duration contracts of employment during their first consecutive 12 months’ employment with the same employer are not required to contribute to the Industry’s benefit funds. Under these circumstances, the employer is required to provide death and disability cover through the industry’s benefit funds to these employees. Where these employees have been in the continuous employ of the same employer for more than 12 months then they must participate in the industry’s benefit funds.

 

7. The abovementioned contribution arrangement shall not apply where an employee chooses to participate in the industry’s pension or provident fund during his or her first 12 month’s employment with the same employer.