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

Notices

Motor Industry Bargaining Council (MIBCO)

The Autoworkers Provident Fund Agreement

Extension to Non-Parties of the Autoworkers Provident Fund Collective Agreement

Clause 10 - Exemptions

 

(1) Subject to the provisions of the Act and the PFA, exemption from any of the provisions of this agreement may be granted by the Council or Regional Councils, to any party on application.

 

(2) Application for exemption shall be made, in a form prescribed by the Council, to the General Secretary of the Council or the Secretary of the Regional Council within whose area the applicant operates or is employed.

 

(3) The Regional Council or the Council, as the case shall be, subject to the provisions of the Act and PFA, fix the conditions subject to which such exemptions shall be valid, and may, if it deems fit, after one week's notice has been given, in writing, to the person(s) concerned, withdraw any license of exemption.

 

(4) The secretary of the Regional Council or the Secretary of the Council, as the case shall be, shall issue to every person granted exemption—
(a) number consecutively all licenses issued;
(b) retain a copy of each licenses issued; and
(a) where exemption is granted to an employee, forward a copy of the license to the employer concerned.

 

(5) The Council or the Regional Council, as the case may be, shall make a decision on the application for an exemption within 30 days from the date upon which the application was lodged with them.

 

(6) Employers seeking to be exempted from this fund may not transfer to an alternate fund until an exemption is granted and shall continue contributing.

 

(7) On the Section 14 transfer process—
(a) A member registering with an alternative fund whilst still with this fund—
(i) shall continue contributing to this fund for as long as he is deemed to be a member of this fund; and
(ii) shall stop contributing when the cancellation of this fund is granted.
(b) A member registering with this fund whilst still on a different/other fund—
(i) shall continue contributing to the other fund for as long as he is deemed to be a member of that fund; and
(ii) shall stop contributing to the other fund when the cancellation of that fund is granted and will start contributing to this fund.

 

(8) Exemption from the Autoworkers Provident Fund:
(a) When applications for exemption are received from employers or a group of employees, requesting exemption from the Motor Industry's retirement funds in order to join an alternative approved fund, the following shall be observed:
(i) The alternative fund must be a properly structured pension/provident/retirement fund registered in terms of the Pension Funds Act.
(ii) Applications for exemption submitted by an employer on behalf of its employees to be exempted from the industry's retirement funds shall be made on an official company letterhead and shall be signed by the employer or its duly authorized representative.
(iii) Applications for exemption submitted by a group of employees to be exempted from the industry's retirement funds, shall be made on an official company letterhead from the company that they are employed at, and shall be signed by each employee or his/her duly authorized representative.
(iv) The contributions to the alternative fund by both employer and employee shall be at least the equivalent to that required by the Industry's funds respectively.
(v) The waiting period for membership to the alternative fund(s) shall not be longer than 6 months.
(vi) All new alternative funds' benefits shall be collectively better than those of the Industry's funds and the benefits of all existing funds which at present enjoy exemption shall be equal to or better than those of the industry's funds.
(vii) Membership of an alternative fund that complies with these criteria shall be compulsory when an exemption is granted from membership of the Industry funds.
(viii) In the event that a dispute arises as a result of the rejection of such application, the dispute shall be referred to an agreed neutral third party or parties, qualified in the matters of retirement funds, who shall observe the provisions of this clause and who shall make a final and binding ruling.