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Understanding the Application of Wages in the Motor Industry September 2012 – 31 August 2013

Division A of the Main Agreement covers generic Conditions of Employment which are applicable to the motor industry other than those conditions which

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Slide 2 Slide 3 Division A of the Main Agreement covers generic Conditions of Employment which are applicable to the motor industry other than those conditions which are specifically applicable to office, stores, sales and clerical employees. Division A also contains definitions and the grades of the various employees. Slide 4 Division B covers all wages and conditions of employment which are applicable to office, stores, sales and clerical employees. Slide 5 Division C contains minimum wages for all employees excluding Office, Stores, sales and clerical employees. Slide 6 Division C is divided into five chapters: Chapter 1 - The entire motor industry, other than those specifically covered in Chapters 2, 3, 4 and 5 Chapter 2 Vehicle Body Builders Chapter 3 Component Manufacturers Chapter 4 Automotive Engineering Establishments Chapter 5 Reconditioning Establishments Slide 7 Sector 1 Manufacturing (Chapter III) Vehicle Body Building (Chapter II) Sector 2 Remanufacturing Sector 3 Engine Reconditioning Establishments Sector 4 Workshops, Motorcycle dealers, Body repairers, tyre dealers etc. Sector 5 Fuel Dealers Sector 6 Dealerships Sector 7 Parts and Equipment Dealers Slide 8 Grades of Employees are included in our circular. Please click link hereunder to access the information relating to the different Grades. http://www.rmi.org.za/wp-content/uploads/2012/08/WageSchedule-1September2012- 31August20134final.pdf (Right click on link, select open hyperlink) Slide 9 Minimum wages means that an employer may not pay a wage less than that which is prescribed for the particular grade or category of employee, unless the employer has obtained an exemption from MIBCO. Please note that Dealerships (Sector 6) employees have higher minimum wages than the rest of the industry. Slide 10 Guaranteed monetary increases - the minimum monetary value of increases to be granted to employees who are earning above the minimum prescribed increases at the time when the agreement becomes effective. Guaranteed monetary increases are not applicable in dealerships (Sector 6) and Component Manufacturers (Chapter III). Slide 11 Component Manufacturing Establishments (Chapter III) grant actual percentage increases to employees below the threshold of R115 500 per annum. Slide 12 The effective date of implementation is 1 September 2012, other than Forecourt Attendants and Cashiers at fuel retailers. The effective date of implementation for Forecourt Attendant wages and Cashiers employed at Service Stations is 5 September 2012. Slide 13 For further information, please contact your nearest Regional Office Johannesburg: Tel (011) 886-6300 Francois Beya Simba Madziwa General Manager : Sibongile Mtaopane Cape Town: Tel (021) 939-9440 Brent Barichievy Johanita Olivier Regional Manager : Jan Schoeman Bloemfontein: Tel (051) 430-3294 Vernon May Regional Manager : Louis van Huyssteen Durban: Tel (031) 266-7031 David van Rooyen Julian Pillay General Manager : Annette Stewart Pretoria: Tel (012) 348-9311 Geraldene Pillay Regional Manager : Pieter Niemand Port Elizabeth: Tel (041) 364-0070 Eckhardt Oelofse Regional Manager : Erwin Stroebel Slide 14 Prepared by: Aruna Ranchod- Director : Industrial Relations Claire Patterson Director : Communications September 2012