ANNEXURE A

FAST MOVING CONSUMER GOODS SECTOR

SUMMARY OF NEGOTIATED SUBSTANTIVE CONDITIONS OF EMPLOYMENT

SCOPE & TERMS OF AGREEMENT:

The negotiated substantive conditions of employment, as detailed hereunder, will be applicable to all employees in the bargaining units of participating companies as defined in existing agreements between employers and the participating unions at company level.

The conditions of employment may also apply to those employers (companies) who were not part of the negotiations process but who may subsequently agree to be covered by these terms.

Existing employment terms and conditions not referred to hereunder will remain status quo. Any existing condition, which is more favourable than the conditions contained  in the agreements, will remain in force at company level.

NEGOTIATED ISSUES

The current minimum wage of R8 341.07 (eight thousand three hundred and forty-one rand and seven cents) will be increased with effect from 1 July 2023 to R8 924.94 (eight thousand nine hundred and twenty-four rand and ninety four cents) and will remain in force till 30 June 2024.

For the period 1 July 2024 to 30 June 2025 the minimum wage of R8 924.94 with be increased by the average CPI plus 1.00% with a floor of 5.50% and a ceiling of 7.00%. (Average CPI will be the average of the Headline CPI for the 12 months - May 2023 to April 2024).

This minimum will also apply to any company, not listed in Annexure "A" who also becomes party to this agreement.

The entry level wage for new permanent employees will be at actual company minimum applicable to the grade/category for the job.

However, this may be reduced by an agreement concluded at plant level between the employer and respective trade union(s) on condition, firstly, that the company undertakes not to resort to the use of labour brokers for those jobs and for the duration of the agreement Secondly that the negotiated entry level wage will not be lower than the agreed sector minimum wage.

In the event that the parties fail to reach agreement, the status quo, i.e., that the entry level wage will remain at actual company minimum, will continue to apply.

A thirteenth cheque (4.33 times the basic weekly rate) is agreed. Pro-rata bonuses will be paid on termination of contracts for retrenchment, ill health, retirement and death in service.

No employee shall receive less than 15 days per annum leave. Additional leave will be granted on the following basis:

Where companies have service-related benefits in respect of additional leave, such will continue to apply.

Sick leave will be granted as per Basic Conditions of Employment Act, 1997 or as amended in future.

Employers agree in principle to consider sympathetically, payment for extended sick leave. Each application will be considered on its merits and requires a medical certificate. A shop steward should assist an employee in this regard.

Female employees covered by this Agreement will be entitled to 6 (six) months off work for the reasons of maternity. Maternity leave will be paid at 35% (thirty five percent) of the basic rate of pay for the period of 4 (four) months and at 40% (forty percent) for the 5th and 6th month. However maternity leave will not impact on the annual bonus (13th cheque). Employees will be entitled to a full bonus in the year(s) maternity leave is taken.

Should an employee suffer a miscarriage or stillborn child up to 6 weeks leave will be granted of which a maximum of one (1) month's sick leave will be paid. Such leave will not be deducted from normal sick leave benefits. A medical certificate will be required.

Female employees proceeding on maternity leave will be guaranteed a same type of job on the same terms and conditions as before the leave.

Females who are entitled to a period of maternity leave will be granted three days special leave for ante natal check-ups prior to going on maternity leave.

This leave may be taken as a portion of a day and proof of the visit to the doctor or clinic must be provided.

HR will assist employees with their UIF claims from the Department of Labour.

Childcare leave of 3 (three) days per annum (separate from Paternity Leave) will be granted for the illness of a child but on condition that it is not taken together with Paternity leave. This means that if a parent takes paternity leave for the birth of his child he cannot immediately after the paternity leave take childcare leave. Childcare leave may however be taken at a later stage if that child, or another one, is sick and needs the care or attention of the parent (up to a maximum of three days per annum).

Paternity leave of 3 (three) days per occasion will be granted following a legitimate application from an employee in respect of the birth of a biological child. A certificate in this regard may be submitted following the application and within a reasonable period.

Compassionate leave of 5 (five) days per occasion will apply following legitimate application from the employee. Such leave will only be granted in the event of the · death of parents, spouses. children, legally adopted children, brothers and sisters or fathers and mothers in law, adoptive parents, and grandparents.

Study leave of 1 (one) day per subject plus 1 (one) day per examination written to a maximum of six days per annum. Prior approval of subjects/courses must be obtained from the employer.

Shop stewards will be entitled to 5 (five) days special leave per shop steward per annum. This leave is not to be pooled or accumulated.

The minimum of 5 days for shop stewards leave will exclude days where a shop steward is an official of a committee of the CCMA, NBCCI, CHIETA and 1he provident fund. The relevant union official should formally inform the company of the request to attend to committee duties and time off should be approved by the company.

A disaster is defined as a sudden, abrupt, or unpredictable circumstance which causes human, material, economic or environmental losses, exceeding the ability of the affected employees to cope with them i.e., floods, storms, lightening and fire.

Employees affected within the agreed definition shall inform their employers of their predicament and request time off. Such request for the time off shall not be unreasonably withheld by the employer. Employees dissatisfied in this regard shall be dealt with in terms of the grievance procedure.

Employees will be entitled to 3 days disaster leave from 1st of July 2022.

Employees will be entitled to those public holidays covered by the Public Holidays Act, and payment for work on those days will be as per the Basic Conditions of Employment Act, 1997.

Where employees are required to work shift patterns or cycles e.g., morning, afternoon and night, such employees shall receive an average shift allowance of no less than 11% (eleven percent). Shift allowance calculations will be based on the basic rate of pay applicable to the employee concerned, will be non-pensionable and will be effective from 1 July 1999. Should an employer currently be paying a higher rate, the status quo will remain.

The normal hours per week will be 40 hours for all employees who are employed by employers' party to this agreement. Tea breaks are Included in the 40-hour week and lunch times are excluded from the 40-hour week.

The parties agree that no unilateral decision will be taken by employers in respect of averaging hours of work without negotiations with the unions. Existing shift patterns and specific working arrangements will continue to apply.

The issue of job security will be referred to plant level with all legal rights of the parties reserved.

The issue to be referred to the Bargaining Council.

To be referred to a task team with full negotiating teams and in accordance with Council procedures.

To be referred to a task team with full negotiating teams and in accordance with Council procedures.

All matters referred to the Task Team must be concluded by end of December 2023.