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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 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 may be, shall 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 may be, shall issue to every person granted exemption, a license signed by him setting out—
(a) the name of the person concerned;
(b) the provisions of this Agreement from which exemption is granted;
(c) the conditions subject to which such exemption is granted; and
(d) the period during which the exemption shall be valid.

 

(5) In respect of establishments registered under Chapters II or Ill of this Agreement, the following exemptions procedure applies:
(a) An employer that applies for an exemption in order to pay a lesser wage increase or to be exempted from paying on actuals shall complete the wage exemption application form available on request from the local Regional Councils.
(b) The employer shall consult its employees on the employer's intention to apply for an exemption and the application for exemption must contain details and proof of the consultation process.
(c) The employer, in the application shall furnish all relevant financial information supporting the motivation for the exemption applied for.
(d) The employer shall lodge the application for exemption with the local Regional Council and the employer shall specify that it is a Chapter II or III application for an exemption and the employer shall specify the exact nature of the exemption applied for as prescribed in paragraph (5)(a) of this clause.
(e) Any application for exemption made to the Council or Regional Council, as the case may be, shall be considered in accordance with the following exemption criteria:
(i) the written substantiation and motivation submitted by the applicant;
(ii) the extent of consultation with and the petition for or against granting the exemption as provided by employers or employees who are to be affected by the exemption if granted;
(iii) the scope of exemption required;
(iv) the infringement of basic conditions of employment rights;
(v) the fact that a competitive advantage is not created by the exemption;
(vi) the viewing of the exemption from any employee benefit fund or training provision in relation to the alternative compatible bona fide benefit or provision, including the cost of the employee, transferability, administration management and cost, growth and stability;
(vii) the extent to which the proposed exemption undermines collective bargaining and labour peace in the Motor Industry;
(viii) any existing special economic or other circumstances which warrant the granting of the exemption;
(ix) cognisance of the recommendations contained in the Report of the Presidential Commission to Investigate Labour Market Policy; and
(x) any recommendation from the Council.
(f) 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) The Secretary of the Regional Council or the Secretary of the Council, as the case may be, shall—
(a) number consecutively all licenses issued;
(b) retain a copy of each licenses issued; and
(c) where exemption is granted to an employee, forward a copy of the license to the employer concerned.

 

(7) The Secretary of the Regional Council or the General Secretary, as the case may be, shall issue to every person granted a license, a letter of authority signed by him setting out, read with the changes required by the context, the information referred to in sub clauses (5) and (6) above.