Labour Relations Act, 1995 (Act No. 66 of 1995)NoticesMotor Industry Bargaining Council (MIBCO)Extension to Non-Parties of the Main Collective AgreementDivision CChapter 3: Manufacturing EstablishmentsClause 2: Wages |
| (1) | Preamble: |
| (a) | Negotiations are based on increases to actual and minimum wages as set out in this clause. |
| (b) | Employees in Chapter III establishments, inclusive of Division B employees employed at Chapter III establishments whose annual earnings is less than the than the National Wage Threshold as set out in the schedule, per period, below will be eligible for annual increases as stipulated in sub-clause (2) hereunder. |
National Wage Threshold:
For the period from the date of implementation of the National Wage Threshold as determined and published by the Minister of Employment and Labour as amended in the Basic Conditions of Employment Act—
| (i) | For weekly earners— |
is the sum of the published National Wage Threshold divided by 52 or 53 (weeks),whichever is applicable;
| (ii) | For monthly earners— |
is the sum of the published National Wage Threshold divided by 12 (months) Actual Wages
| (2) | Actual Wages: |
The following increases shall be paid on actual wages:
| (a) | 6% in respect of the period from the date of implementation as determined by the Minister of Employment and Labour to 31 August 2026. |
| (b) | 5% in respect of the period 01 September 2026 to 31 August 2027. |
| (c) | 5% in respect of the period 01 September 2027 to 31 August 2028. |
| (3) | Set-off |
An employer who has granted an increase over and above the prescribed increases during the preceding 12 months may offset those increases against the increases set out below; provided that no wage increases shall be offset on more than one occasion.
| (4) | Prohibition on Industrial Action |
The Parties undertake not to embark on any industrial action as a result of disputes on minimum wages and percentage increases relating to any other chapters of this Agreement provided the employer has implemented this Agreement and in which case any such industrial action is deemed to be unprotected.
| (5) | Exemptions |
An employer may apply for an exemption in respect of the increases to actual wages as set out in this Clause in accordance with sub-clause 8.1(1)(e) of Division A of this Agreement. Clause 5 of the Administrative Agreement (administrative change).
| (6) | Minimum Wage |
Subject to the provisions of sub-clause (7) of this Clause dealing with bonuses, the minimum wage that an employer must pay to each of his employees of the under-mentioned classes must be as set out in the Schedules hereunder and no employee shall accept a wage lower than that specified for his class.
| (7) | Bonus |
Employers shall permit employees for whom wages are prescribed for operatives Grade 3, 4, 5 & 6 in the Schedule to use measuring instruments and/or gauges and the minimum weekly prescribed wage must be increased if the employee at any time in the course of his or her duties uses—
| (a) | vernier gauge and/or micrometer in which event the prescribed wage must be increased by— |
| (i) | R16.28 from the date of implementation as determined by the Minister of Employment and Labour to 31 August 2026; |
| (ii) | R17.09 for the period 01 September 2026 to 31 August 2027; and |
| (iii) | R17.94 for the period 01 September 2027 to 31 August 2028 per week; or |
| (b) | a tape and/or ruler and/or square and/or sets and adjusts the machine he operates in which event the prescribed wage must be increased by— |
| (i) | R10.85 from the date of implementation as determined by the Minister of Employment and Labour to 31 August 2026; |
| (ii) | R11.39 for the period 01 September 2026 to 31 August 2027; and |
| (iii) | R11.96 for the period 01 September 2027 to 31 August 2028. |
| (8) | WAGE SCHEDULES: |
| (a) | Minimum wages from the date of implementation as determined by the Minister of Employment and Labour to 31 August 2026— |
Apprenticeship and learnership minimum wages for the period from the date of implementation as determined by the Minister of Employment and Labour to 31 August 2026—
| (b) | Minimum wages from 01 September 2026 to 31 August 2027— |
Apprenticeship and learnership minimum wages from 01 September 2026 to 31 August 2027—
| (c) | Minimum wages from 01 September 2027 to 31 August 2028— |
Apprenticeship and learnership minimum wages from 01 September 2027 to 31 August 2028—
