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 B - Five-Grade Job and Wage Structure

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ANNEXURE B

FIVE-GRADE JOB AND WAGE STRUCTURE

1.	Individual employers, together with worker representatives and/or registered trade unions recognised at establishment level, shall mutually agree on whether to adopt the new job and wage structure or to continue using the current thirteen grades and related arrangements.

2.	It is the intention of the parties that the decision whether or not to adopt the new grading structure should be a voluntary one on both sides. However, where consensus on the matter cannot be reached between the parties at establishment level, the following disputes procedures shall apply:

Step 1:

The matter shall be referred to the relevant Regional Council for conciliation. Two assessors, one from the employer side and one from the trade union side may, by mutual agreement, be appointed to assist the conciliator. The assessors shall be selected from outside the establishment. Any costs arising from the use of assessors shall be borne by the parties concerned.

Step 2:

Where this is unsuccessful in resolving the dispute, both parties or either party may refer the matter to an arbitrator who will attempt to conciliate the dispute. The costs of the conciliation and subsequent advisory arbitration process (where this is undertaken) shall be negotiated at establishment level. Two assessors, one from the trade union side and one from the employer side, will be appointed. The assessors shall be selected from outside the establishment. Any costs arising from the use of assessors shall be borne by the parties concerned.

Step 3:

Should this conciliation not be successful, the arbitrator will then decide the matter in terms of advisory arbitration.

Step 4:

Should the parties not have followed the conciliation/advisory arbitration process set out in Steps 2 and 3 above or should either party not be prepared to accept the advisory arbitration decision, they will be free to pursue the matter in terms of legal industrial action. Alternatively, the parties may agree in advance that the arbitration decision will be final and binding, in which case no legal industrial action may be implemented.

3.	No party may adopt one element of this Agreement as set out below, without adopting all of the others, namely:

(a)	Multi-skilling/multi-tasking/flexibility.

(b)	The five-grade wage model.

(c)	Job security as set out elsewhere in this Agreement.

It is, however, recognised that any job requires a degree of flexibility to meet normal operational requirements and changes. This degree of flexibility, therefore, under normal circumstances, will not constitute an element of this Agreement as specified above.

Should a dispute on this issue arise at a workplace then the dispute resolution process outlined in paragraph 4 of the Agreement shall be followed.

When agreement has been reached between the parties to adopt the new structure but where disputes arise regarding the grading of workers, the same procedure will be followed as outlined in paragraph 2 above. However, in this case the arbitrator will decide the matter in terms of final binding arbitration.

Where establishments adopt the new grading structure, employees will be required to undertake any tasks or combination of tasks falling within the scope of that employee’s job grade or any tasks or combination of tasks falling within any grade below this level: Provided that, if necessary, the employee has received or is receiving the necessary training to undertake the tasks in question. Employers will make the necessary mutually agreed training opportunities and assessment available to identified employees while employees will agree to attend the courses and undertake competency-based assessments in accordance with the relevant training requirements. No additional remuneration will be payable to the employee for such changes in area and scope of work over and above that set out under paragraph 8 of this Agreement.

The party trade unions undertake to use their best endeavours to ensure that their members are aware of the implications of the new job and wage structure and their obligation as employees, having agreed to enter the new structure, to undertake a broader range of work. To this end, where a decision has been taken in accordance with paragraph 1 above to implement the new job and wage structure, recognised shop stewards will be granted a minimum period of one day’s leave, subject to reasonable operational requirements, as a contribution towards a training course for shop stewards to be conducted under the auspices of the unions concerned with regard to this Agreement.

7.	The parties will review the five skill definitions with a view to amending these to ensure that they effectively meet the multi-skilling and flexibility objectives of the parties. They will also agree on the new technical schedules in accordance with these definitions and indicative tasks.

A.	FROM THE COMING INTO OPERATION OF THIS AGREEMENT, 1 JULY 2021 TO 30 JUNE 2022

For those establishments that have implemented or intend to implement the new job and wage system, the following minimum wage shall apply for the new five-grade structure. For those establishments that have implemented the five-grade job and wage structure, the following increases shall apply on the same terms as set out in clause 1 of Part II of this Agreement.

The actual wage structure, including the benchmark figure for artisans, shall be agreed at company level depending upon the nature of multi-skilling, multi-tasking broad banding and employee flexibility agreed between the affected employer and trade union(s).

Grade	Current Minimum Scheduled Rates	Percentage Increase on Scheduled Wage Rates	Guaranteed Rand and Cents Increase per hour	New Minimum Wage Rates
5	84,75	5,00	4,24	88,99
4	72,96	5,00	3,65	76,61
3	62,84	5,00	3,14	65,98
2	54,10	5,00	2,71	56,81
1	46,63	5,00	2,33	48,96

B.	FOR THE PERIOD 1 JULY 2022 TO 30 JUNE 2023

Grade	Current Minimum Scheduled Rates	Percentage Increase on Scheduled Wage Rates	Guaranteed Rand and Cents Increase per hour	New Minimum Wage Rates
5	88,99	5,00	4,45	93,44
4	76,61	5,00	3,83	80,44
3	65,98	5,00	3,30	69,28
2	56,81	5,00	2,84	59,65
1	48,96	5,00	2,45	51,41

C.	FOR THE PERIOD 1 JULY 2023 TO 30 JULY 2024

Grade	Current Minimum Scheduled Rates	Percentage Increase on Scheduled Wage Rates	Guaranteed Rand and Cents Increase per hour	New Minimum Wage Rates
5	93,44	5,00	4,67	98,11
4	80,44	5,00	4,02	84,46
3	69,28	5,00	3,46	72,75
2	59,65	5,00	2,98	62,63
1	51,41	5,00	2,57	53,98

8.	The parties will consider the introduction of a sixth and seventh grade (above Rate A/Grade 5) during the course of the 1997/8 Main Agreement.

No employer who agrees to adopt the five-grade job and wage structure on a voluntary basis in terms of paragraph 1 above may retrench any worker as a direct result of any arrangements implemented in terms of this Agreement during the phasing-in period of the new wage structures, unless such retrenchment is on a voluntary basis, or unless external circumstances beyond either party’s control impact upon the enterprise. Where jobs become redundant as a result of the process outlined in this Agreement during this period, the following options will be available to employers:

(a)	Redeployment into other positions.

(b)	Reduction in the size of the workforce through natural attrition.

(c)	Voluntary retrenchment with or without further training.

(d)	Voluntary early retirement.

In all other circumstances and respects, the provisions of clause 35 of the Main Agreement will continue to apply.

10.	The provisions of paragraph 10 above will also apply in the following circumstances:

(a)	The employer has indicated that he is not prepared to adopt the new job and wage structure; and

(b)	the matter has been referred to arbitration in terms of paragraph 2, Steps 3 or 4; and

(c)	the arbitrator decides that the company has no valid reasons for refusing to adopt the new structure and has not been dealing with the matter in good faith.

11.	In all other cases where establishments adopt the five-grade job and wage structure following arbitration and/or industrial action or the threat of industrial action, the provisions of paragraph 10 above will not apply.

12.

The period 1 July to 31 December 1996 will be used by the parties as a period of preparation to introduce the new job and wage structure and revised technical schedules and their benefits to the industry and to assess the likely usage of the new arrangements. Such assessment and introduction will be completed by 31 January 1997. Should the parties find that there are no establishments prepared to enter the new structure at this stage, negotiations will be re-opened. Parties at establishment level proposing to implement the new structure will notify one another of such proposal. The parties will then meet to discuss the proposal.

Should agreement be reached in principle, the parties will then discuss proposals relating to the method of introduction of the new structure and, in particular, how work will be restructured, which grades will apply and what training will be provided to employees to enable them to undertake a broader range of tasks.

The parties will also agree at establishment level on appropriate times and methods for worker representatives, shop stewards and management to communicate progress on and implementation of the new job and wage structure to the workforce. Establishments may decide to adopt the five-grade wage structure at any time, subject to the provisions of this paragraph.

13.	The parties also agree to the following:

(a)

To meet with experienced arbitrators in order to develop a set of guidelines to assist arbitrators in facilitating in disputes and in reaching arbital decisions. For example, one such guideline shall be that arbitrators should not decide in favour of the new structure where either side is able to show that the change would be to their material disadvantage.

(b)	To define the precise role of the two assessors referred to in paragraph 2 above.

(c)	To give further consideration to a mechanism for resolving disputes that may arise where employers who have adopted the new job and wage structure seek to retrench workers for reasons unrelated to this.

(d)	To finalise the proposed Productivity Framework Document by 31 December 1996 for inclusion in this document.

14.	The parties acknowledge the necessity to generate employment opportunities in the industry, the importance of the acquisition of skills, and the need to create career opportunities for new workers. Accordingly, new entrants to Grade 1 at the company shall, for a maximum 12-month period—

(a)	be trained to perform the Grade 1 tasks required at the company concerned, with the training required for these employees to be agreed on at establishment level; and

(b)	be paid a wage rate of not less than Grade 1 less 20%.

15.	The parties, in order to promote local employment opportunities on construction sites, agree to apply the wage structure specified in paragraph 15 above to those construction site employees who are not covered by Schedule G, section (d) of the Main Agreement and—

(a)	who are employed on fixed-term contracts of employment for the duration of the construction project or a lesser defined period; and

(b)	who are sourced from local communities; and

(c)	whose activities are confined to general labouring tasks.

16.

Where employers wishing to implement the five-grade job and wage structure wish to exclude any employees or category of employees from these arrangements they must obtain agreement on these exclusions with the worker representatives, trade unions and workers concerned at establishment level. Workers excluded in terms of this paragraph will continue to receive their current rates of pay increased in line with the annual Main Agreement negotiations. The Regional Council must be notified of these exclusions.

17.	In terms of the 1993 Main Agreement Settlement, none of the above arrangements will apply to Schedule G, Section (d): Structural Engineering (paragraph will be further debated with representatives of the Constructional Association).

18.	Industry training issues

1.	Principles that should inform the Recognition of Prior Learning Process (RPL)

The parties have agreed to the following:—

(a)	RPL is a process to give recognition to workers for the skill and knowledge that they already have. The RPL process involves assessment against agreed standards to obtain credits leading to certification.

(b)

In companies implementing the Five Grade system, all workers wishing to be assessed for the purpose of RPL in terms of unit standards required by the company for the employees’ current occupations shall be allowed this opportunity. The time-frame for this assessment shall be agreed between worker representatives and management at company level. In companies not implementing the Five Grade system, assessment for the purpose of RPL shall take place by mutual agreement.

(c)	No worker shall be obliged to participate in the RPL process.

(d)	No worker can be downgraded as a result of the RPL process.

(e)	Workers shall be assessed in a language of their own choice, insofar as this is practicable at the company concerned.

(f)	All decisions relating to the RPL process shall be decided on by the unions and employers jointly at national level.

(g)	RPL is not a once-off process but is an ongoing process.

2.	Training Modules: Five Grade Structure—

The parties have agreed to conclude negotiations on the number of unit standards per grade, by 31 March 1998.

3.	Training of Industry Employees—

(i)	The employer and trade union parties have agreed that workers identified in subparagraph (ii) shall have access to paid training which will provide them with career development opportunities. Such paid training shall be appropriate to the needs of the organisation and the industry.

(ii)	In order to achieve this objective management shall jointly consider with worker representatives, at company level, appropriate training programmes to address identified skill deficiencies, the amount of training required and the identification of which employees require training.

(iii)

The above provisions will not affect existing company-level training arrangements falling outside this framework.

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 B - Five-Grade Job and Wage Structure

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