The National Union of Metalworkers of South Africa (Numsa), the Fuel Retailers’ Association and the Retail Motor Industry will on Tuesday sign a three-year wage deal.
The wage agreement will cushion the wages of motor-retail workers by 7,5%. It will cover 180 000 workers in petrol stations, component manufacturing, car-dealer shops and panel-beating shops.
Numsa spokesperson Dumisa Ntuli said that the wage deal has been ratified by motor-retail workers.
The agreement was to be signed by parties at 1pm on Tuesday at Garden Court in Kempton Park.
Ntuli added that the agreement will be concluded in good spirits with some “useful” wage results for motor retail workers.
According to Numsa, the three-year agreement will start on September 1 and end on August 31 2007.
The trade union said the wage increases on actual rates of pay will be 7,5% in one year; CPIX for June 2005 plus 1% in year two; and CPIX for June 2006 plus 2% in year three.
Capping parameters of 5% and 9% will apply during year two or three — that is, should the CPIX plus 1% in year two and/or CPIX plus 2% in year three fall below 5% or exceed 9%, then the increase in that year will be fixed at either 5% or 9%.
The agreement also provides that a leave bonus will now increase from two weeks to three weeks in year two. It was also agreed that workers will produce medical certificates or other satisfactory evidence within a specified period of sick leave.
The parties will jointly participate towards a speedy resolution within the Agency Shop Agreement to expedite the submission of the agreement for gazetting and extension to the entire industry.
Ntuli noted that after four months of sometimes-heated discussions and deliberation, the parties will sign and conclude the agreement with some encouraging wage results.
“The wage agreement is historic and significant in increasing the salaries of workers. It is the first long-term agreement in the industry. It is the first time that employers in the motor retail sector have recognised the idea of a multi-year agreement,” he said.
“It will give workers tangible improvements on their actual salaries and stable benefits. There will be a comparable rise in the income of workers. We are committed to providing attractive wage packages and amassing more benefits for workers.” — I-Net Bridge