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

Notices

National Bargaining Council for the Clothing Manufacturing Industry

Main Collective Agreement

Part A : Provisions for the Eastern Cape Region

6. Wages

6.1 Minimum Wages

Minimum Wages (3) : New Employees

Purchase

3.1	New employees shall be paid a weekly wage of 70% of the rate in metro areas, subject to the following provisions:

3.1.1

New employees are those persons with no previous working experience in the industry and shall include those persons with previous work experience but who have not been employed in the industry for a period of 3 years.

3.1.2

The provision is only applicable to compliant companies.

3.1.3

(a)	The new entry-level wage provision will continue in force and effect as an industry-wide provision after the 31st August 2014 if there has been an increase in employee strength of compliant employers in the industry of at least 15% as at 31st March 2014, monitored on a bi-annual basis.

(b)	The bi-annual benchmark monitoring shall be measured against the following schedule of new employment growth:

1 March 2012:	3% increase
1 September 2012:	6% increase
1 March 2013	9% increase
1 September 2013	12% increase
1 March 2014	15% increase

3.1.4

It is only applicable to those compliant companies who were in existence and operational as at 1 June 2011.

3.1.5

All other provisions of the main agreement shall be applicable to new employees.

3.1.6

The closed shop shall be applicable to all new employees.

3.1.7

(a)

The employee strength to determine whether or not there has been an increase in employee strength will be measured by comparing the employee strength of compliant employers whose businesses are registered with the bargaining council on the 1st June 2011, as per clause 3.1.3, and to that of the employee strength of compliant employers whose businesses are registered with the bargaining council on the 31st March 2014, i.e. a period of 30 months following the implementation of this Agreement.

(b)	In the event that the employee strength does not increase as per the provisions of this Agreement and more specifically, the provisions of Clause 3.1.3 above, the provisions of the new-entry wage provision will terminate.

(c)

Upon such termination of the application of the new entry level wage provision, the wages of all employees earning the new-entry wage will be increased to the full applicable gazetted wage for all job categories from the first pay week following the 31st August 2014, unless the parties during the 2014/2015 round of annual or other negotiations agree otherwise or agree to an alternative to address any further job losses or the absence of job growth in the industry.

3.1.8

Employers shall not embark on retrenchment exercises, where the intent of such retrenchment is to employ employees at the rates specified in subclause 3.1.3 (a) above.

3.1.9

Employers will ensure that short time arrangements are at all times fairly and equitably distributed across a workplace’s employees in all job categories affected by short time arrangements.

3.1.10

Qualified employees shall be employed at the qualified new entry rate, subject to subclause 3.1.1.

3.1.11

Effective 1st September 2011, all retrenched employees will, within a period of 12 months of having been retrenched, be given preferential employment in the same job category at the same wage rate which was applicable at the date of the employee’s retrenchment or any higher wage rate which may have been gazetted and become applicable to the affected employee’s job category after such date of retrenchment.