SEIFSA NEWS Nov Dec 2022

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2022 Preferential Procurement Regulations and the Public Procurement Bill We Need to find a Common Purpose Contextualising R78 per hour Flexibility and The Main Agreement SEIFSA and MEMSA Honour the brightest and best IN METALS AND ENGINEERING AWARDS FOR EXCELLENCE ANNUAL EVENT

FESTIVE SEASON CLOSURE OF

Contents Page SEIFSA wishes you a safe and peaceful festive
and a very prosperous 2023
season
SEIFSA OFFICES
SEIFSA offices will close onWednesday 21 December 2022at 12h00 and will re-open at 08h00 Monday, 10 January 2023. Companies requiring urgentassistance during this period arerequested to consult the executive by mobile or email address
Lucio Trentini: 082 449 6270 or lucio@seifsa.co.za Tafadzwa Chibanguza: 082 343 7817 or tafadzwa@seifsa.co.za Nuraan Alli: 082 602 1725 or nuraan@seifsa.co.za Zizile Lushaba: 060 825 2777 or zizile@seifsa.co.za Vuyiswa Miya: 083 249 7887 or vuyiswa@seifsa.co.za Theresa Crowley: 082 725 6717 or theresa@seifsa.co.za Michael Lavender: 082 459 7678 or michaell@seifsa.co.za
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19 SEIFSA, Italian-South African Chamber of Trade and Industries and Imbokodo Trust join forces to Empower Young Black Woman 16 Preferential Procurement Regulations and the Public Procurement Bill Preferential Procurement Regulations and the Public Procurement Bill Content It’s time to rebuild trust 26 Special phase-in dispensation 35 07 We Need to Find a Common Purpose 23 082 602 1725 WHATSAPP SEIFSA and MEMSA Honour the brightest and best in Metal and Engineering Awards for Excellence Annual Event 06 Contextualising R78 per hour 32 Accredited Temporary Employment Service Providers 30 Flexibility and The Main Agreement 37 discontinued 2023 SEIFSA Workshops and Training 41

Forging a new way foward, together

For NEARLY 80 years, SEIFSA has been helping businesses succeed and achieve their goals by proving industry-leading solutions that protect and empower employers

Publisher

Steel and Engineering Industries Federation of Southern Africa (SEIFSA) Advertising sales@seifsa.co.za or (011) 298-9400

Editor Nuraan Alli

Tel: (011) 298 9436 or E-mail: nuraan@seifsa.co.za

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Zandile Ngubeni

Tel: (011) 298-9421 or E-mail: zandile@seifsa.co.za

ISSN - 1560 - 9049

Opinions expressed in the articles do not necessarily reflect the views of SEIFSA. Similarly, advertising in this publication does not imply endorsement or approval of any such products or services by SEIFSA. While every attempt is made to ensure the accuracy and correctness of information contained in this publication, SEIFSA accepts no liability for any losses or damages sustained through the use thereof. Articles may only be reproduced with permission.

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The world is changing and so must we. We have noticed that members generally prefer to get their news as it happens via various social media platforms and forums. Hard Copy Newsletters, Magazines and even Newspapers are being overlooked for instant access to up to date and reliable information. Thus, it is with a twinge of sadness, that we announce this will be our last edition of SEIFSA News. Rest assured SEIFSA will ensure that you are always kept abreast of newsworthy developments in our industry, your Association, as and when it happens through our various social media platforms and forums. Connect with us on www.seifsa.co.za and info@seifsa.co.za

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SEIFSA AND MEMSA HONOUR THE BRIGHTEST AND BEST IN METALS AND ENGINEERING SECTOR AWARDS FOR EXCELLENCE ANNUAL EVENT

SEIFSA CEO Lucio Trentini welcomed everyone to the ceremony, saying, “We believed that, notwithstanding the many challenges faced by the sector, there are companies within the metals and engineering (M&E) sector that are doing fantastic, innovative work that must be recognised and celebrated. Companies in the sector have demonstrated that they are capable of innovating, and fostering good relations with their employees, suppliers, customers and the communities around their operations.

SEIFSA is not only honoured to be associated with each and every entry but, more importantly, privileged to recognise and acknowledge excellence.”

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MEMSA CEO Lehlohonolo Amos Molloyi said he was happy to join SEIFSA in celebrating excellence, adding:

“While most of our members form part of the steel value chain, their products and services are specifically aimed at meeting the needs of the mining industry, with its own unique and complex requirements.

“While most of our members form part of the steel value chain, their products and services are specifically aimed at meeting the needs of the mining industry, with its own unique and complex requirements. MEMSA are thankful to SEIFSA for allowing us to share the stage with the SEIFSA Awards for Excellence this year, we regard this event as an excellent context for the launch of our awards.

“The SA mining equipment industry is well respected for its technological and innovation advancement; however, the pandemic and lockdowns presented a test to our ingenuity and resilience. It is in the midst of these challenges that we witnessed some excellence in innovation, structuring of work and manufacturing processes, and we are proud to report that not one MEMSA member company, which was actively manufacturing for the mining industry, permanently closed its doors during or since the pandemic.”

SEIFSA CEO Lucio Trentini welcomed everyone to the ceremony, saying, “We believed that, notwithstanding the many challenges faced by the sector, there are companies within the metals and engineering (M&E) sector that are doing fantastic, innovative work that must be recognised and celebrated. Companies in the sector have demonstrated that they are capable of innovating, and fostering good relations with their employees, suppliers, customers and the communities around their operations. SEIFSA is not only honoured to be associated with each and every entry but, more importantly, privileged to recognise and acknowledge excellence.”

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MEMSA CEO Lehlohonolo Amos Molloyi

MEMSA CEO Lehlohonolo Amos Molloyi said he was happy to join SEIFSA in celebrating excellence, adding: “While most of our members form part of the steel value chain, their products and services are specifically aimed at meeting the needs of the mining industry, with its own unique and complex requirements. MEMSA are thankful to SEIFSA for allowing us to share the stage with the SEIFSA Awards for Excellence this year, we regard this event as an excellent context for the launch of our awards.

“The SA mining equipment industry is well respected for its technological and innovation advancement; however, the pandemic and lockdowns presented a test to our ingenuity and resilience. It is in the midst of these challenges that we witnessed some excellence in innovation, structuring of work and manufacturing processes, and we are proud to report that not one MEMSA member company, which was actively manufacturing for the mining industry, permanently closed its doors during or since the pandemic.”

WINNERS

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WINNERS

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12 Contents Page WINNERS Environment Stewardship Award MSC Technical (Pty) Ltd

WINNERS

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Business Resilience of The Year Award – (Covid) Vesconite
of the Year 2022 Karina Sewsunker
Bursar
14 Contents Page THANK YOU THANK YOU TO OUR SPONSOR THANK YOU TO ALL THENOMINEES

Johannesburg, 21 November 2022 –

The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) has partnered with the Italian-South African Chamber of Trade and Industries (ItalCham) and the Imbokodo Trust with the aim of empowering young black woman and assisting companies to improve their B-BBEE compliance.

The three organisations have signed a memorandum of understanding (MOU) with the aim of exchanging information, including newsletters, reports and market analyses, organising events that provide networking opportunities and introducing potential partners to each other.

SEIFSA, Italian-South African Chamber of Trade and Industries and Imbokodo Trust join forces to Empower Young Black Woman

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Theo Sibiya, Chairman: Imbokodo Trust, Lucio Trentini, CEO: SEIFSA and Virgilio DaMolo, President: Italian South-African Chamber of Trade and Industries

SEIFSA CEO Lucio Trentini, ItalCham president Virgilio Da Molo and Imbokodo Trust chairman Theo Sibiya were the signatories of the MOU. Trentini said: “We are confident that our exciting partnership with the ItalCham and Imbokodo Trust will afford SEIFSA’s affiliated membership an opportunity to address the many challenges faced by young black

woman in the sector and in the process improve their B-BBEE compliance.”

Da Molo said: “This MOU is very important to us as it will allow us to operate the Imbokodo Trust efficiently and effectively, providing simple solutions to our members and ensuring that the ItalCham contributes meaningfully to the

country’s transformation agenda.”

The many synergies between SEIFSA, ItalCham and Imbokodo Trust will contribute to the success of the partnership between the three bodies, all of whom are committed to the highest ethical standards and providing benefits to their membership and beneficiaries.

Trust’s many programmes with strict compliance with B-BBEE legislation, while the Trust has committed itself to contributing donor funding to the SEIFSA Training Centre in the achievement of these goals.

For the three organisations, the MOU is a pathway to addressing the challenges faced by young black woman in the sector, assisting companies to improve their B-BBEE compliance and in the process contributing to a better South Africa.

SEIFSA supports companies in South Africa’s metals and engineering sector through lobbying, advocacy and collective bargaining. Its members range from giant steel-making corporations to micro-enterprises employing fewer than 50 people.

In terms of the MOU, SEIFSA has pledged to find beneficiaries for the Imbokodo

ItalCham promotes and facilitates trade between Italy and Southern Africa through market intelligence and tailormade services and events. It is also a member of the EU Chamber of Southern Africa.

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We are confident that our exciting partnership with the ItalCham and Imbokodo Trust will afford SEIFSA’s affiliated membership an opportunity to address the many challenges faced by young black woman in the sector and in the process improve their B-BBEE compliance
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Preferential Procurement Regulations and the Public Procurement Bill

Public procurement or sales to the government from the metals and engineering sector constitutes 22.9% of total domestic sales. However, for some sub-sectors, like electrical machinery, sales to state organs is as much as 55% of domestic sales.

The administrative and compliance costs for a company supplying the same product to two or more state organs, who may pursue very different socioeconomic agendas, will be exorbitant and punitive.

We have studied the published Preferential Procurement Regulations with grave concerns, particularly over the fact that National Treasury has opted to maintain the position that was contained in the draft regulations that each state organ will be given the responsibility to develop and decide their own procurement policies, particularly as it relates to the socio-economic considerations.

Given the importance of public procurement for the sector, SEIFSA has been actively involved in making national representations on behalf of the metals and engineering sector to the Public Procurement Bill and the Preferential Procurement Regulations.

The SEIFSA submission warned that devolving this obligation to each state organ will create an untenable administrative and compliance environment for domestic companies. The administrative and compliance costs for a company supplying the same product to two or more state organs, who may pursue very different socio-economic agendas, will be exorbitant and punitive.

Regarding the former, SEIFSA was part of the Business Unity South Africa (BUSA) business delegation that consulted on the bill at NEDLAC for the last six months.

On the draft Preferential Procurement Regulations that were published for public comment on the 10th of March 2022, SEIFSA prepared a substantial written submission commenting on these regulations. Subsequently, National Treasury published the Preferential Procurement Regulations on the 4th of November 2022, with an effective date of 16 January 2023.

The submission suggested that National Treasury should develop a national guideline for state organs to comply with in the development of their procurement policies. This is important for institutional coordination and alignment across the multiple state organs. It will also make monitoring and enforcement of regulations possible. Coherence and uniformity should be the basis on which national regulations are developed.

The other concern is the fact that National Treasury have indicated that these Preferential Procurement regulations are a stop-gap policy instrument that will be in place until the Public Procurement Bill is promulgated. The Preferential Procurement Regulations will be in effect from 16 January 2023 and

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National Treasury anticipates the Public Procurement Bill to be presented before Parliament by the end of calendar year 2022 or before the end of this fiscal year (February 2023).

roughshod process. All the while the costly, uncertain and disruptive environment that the Preferential Procurement Regulations potentially create will be the prevailing reality for suppliers to the state.

The concern here is that based on historic experience with bills going through the Parliament, National Council of Provinces (NCOP), promulgation and signature by the President (who may also send the bill back through the Parliamentary process for one or other issue) generally takes a long time. One can anticipate that the importance of this bill particularly given the approximately R800 billion to R1 trillion per annum of state spend that it will govern over and all the possible socio-economic considerations that are associated, the parliamentary process will not be a

The unintended consequence of this approach that has been adopted by National Treasury will likely be one where companies may well adopt a wait-and-see approach, which will itself have adverse consequences from the point of view of investment decisions that may be delayed. This again is an example of the own-goals that the country has become accustomed to scoring.

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We Need to Find a Common Purpose

I am well aware that trust is exceptionally hard to earn and easy to break. But we’re not going to get out of this mess by tinkering at the edges, making small adjustments and compromises here and there and hoping things will get better.

At the Metal and Engineering Industries Bargaining Council, the apex industry body, where business and labour meet, a new way of engaging with one another is desper ately needed. If we all stay in our lanes, defend our corners and remain fixed in a win/ lose paradigm we will simply not find a common purpose about where to go, together.

The Bargaining Council, created almost eighty years ago, was established for a common purpose, painstakingly crafted by business and labour leaders of the day, determined we’d all have a better future.

As our country contemplates coalition government at all levels, one is reminded of how feuding employer organisations on the bargaining council tried working together. In truth, these experiences were neither enduring nor effective and anything but successful. Representatives, elected by their respective constituencies, to represent the best interest of the industry, have failed dismally in distinguishing between party and purpose.

more importantly the industry.

For the narrative to shift and the paradigm to change, we have little choice but to gather again.

With the gazettal of a new set of administration and dispute resolution levies, the Council has been given a new lease of life, a second chance to repurpose its core function. However, even with all the will in the world, the Council cannot do this on its own and hence the question, what can we, as elected representatives, do to shift the narrative away from win/ lose to win/win?

As parties to the bargaining council, we haven’t had a good track record in the past 12 years. We have all to varying degrees been guilty of prioritising one’s own selfish needs and agendas above what could be in the best interest of the sector as a whole.

alluded, there is more uniting the different parties on each side and across of the table than dividing us. Afterall, we are all in this together.

Inevitably, where party overrules purpose, irreconcilable differences, indecision and destruction is what follows. It serves little purpose in allocating blame; we are all complicit in varying degrees and we all stand accused of not just having failed our respective constituencies but

The need for growth is beyond urgent. We require a substantial shift from the failed modus operandi of the last 12 years. What is needed is an end to the self-inflicted damage that party posturing and the pursuit of narrow agendas have caused.

The situation is beyond urgent. We need a plan of action. If we, as elected representatives on the Council, cannot chart a clear course ahead in tackling the obstacles in the industry to job security and growth, what is the point of holding onto a bargaining council? What we need, now more than ever before, is an understanding of the difference between compromise and consensus. There is little doubt we need more, much more of the latter. As I’ve

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It’s time to rebuild trust

In my last note I put a challenge to our employer colleagues on the Metals and Engineering Industries Bargaining Council (MEIBC) that given that our economy is on its knees – now would be a good time to rise above the rhetoric and play a more constructive role in the affairs of the Council. After all, I said, employers represented by the Employer Organizations on the MEIBC have far more in common than what they think.

If

on the private sector. The President is well aware that he cannot solve the country’s problems alone. The state needs the private sector to step up in a big way.

Over the last ten years, trust between employer organizations on the bargain ing council has all but been eroded. This has severely hampered the work of the bargaining council, has almost led to its liquidation and created a toxic and dys functional operating environment that has made it impossible to even begin ad dressing the real challenges facing our sector.

The MEIBC, once the benchmark, for all Bargaining Councils, is today a shadow of its former self, lurching from one crisis to the next. Staff are demoralized, many have left and it’s a miracle that they have been able to keep the doors open, given that their existence depends solely on two income streams, the administration and dispute levy, both of which were last reviewed in 2011.

For South Africa, our economy and the metals and engineering industries to dig itself out of the current crisis, business has to take the lead. Whilst it is up to employers to keep the wheels of industry turning, the job of all role players on the MEIBC is to create a predictable, stable policy environment and for this to succeed requires trust.

Bargaining Council are created by the parties that sit-on them, to provide a platform to conclude agreements covering terms and conditions of employment, including so cial security benefit fund agreements. More importantly, the platform created by a bargaining council, in bringing organized business and labour around a single table, in an atmosphere of collaboration and joint problem solving ideally should be aimed at highlighting, debating and addressing the many obstacles standing in the way of meaningful interventions in moving the needle forward on job retention, creation and economic prosperity.

This sadly, has not been the case on our Bargaining Council for many years. It serves no purpose to allocate who is mainly, partly or not at all to blame for this sorry state of affairs. As participants and I refer specifically to the employer representatives on the Council, are all culpable, in varying degrees.

we are going to survive this current crisis, we know that government is pinning its hopes of an economic revival

63% of youth in SA under 24 years are unemployed

Trust is built over time and requires a level of transpar ency that has not been forthcoming from within the employer bloc. Rebuilding trust is difficult, but is vital if the MEIBC is to play a pivotal role in facilitating meaningful and constructive dialogue between all social partners.

The point here is that trust needs to be rebuilt, not so much as between the trade unions themselves or in the engagement process between trade unions and employers but instead amongst the different employer groupings on the Council. This is where the relationship, dynamic and mind-set to move forward has completely broken down. It’s a tragedy that more often than not unions on the MEIBC are able to find a single unified voice as opposed to the differing and bickering voices that make up the employer bloc.

The stakes are higher than they have ever been. Our economy is under siege as it battles a job, growth and hunger crisis. A devastating 63.9% of South Africans under the age of 24 are unemployed, consumer inflation is at a 13 year high and one in four people live below the food poverty line.

to the crisis facing our sector, how can we pull together and build the MEIBC that we are supposed to serve and finally, how can we move beyond our narrow and fixed paradigms. I believe we have no choice; we can continue to quibble, disagree and look to score points off one another or we can wipe the slate clean and start afresh. The choice is quite simple, change the paradigm or continue on the path to eventual insignificance.

Employer representatives, duly elected by their respec tive constituencies, simply cannot afford to play fast and loose with the trust members have invested.

Who is prepared to lay down their arms (figuratively speaking) and take a seat at the table with a view on focusing on what unites us as opposed to what keeps us apart?

It’s high time employer representatives elected to serve on the Council bury the hatchet and take a step forward and ask: how can we make a meaningful contribution

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ECONOMIC AND COMMERCIAL NEEDS

TRAINING CONSULTANCY PUBLICATIONS

Training and consulancy

We can consult and train on any of the matters of Economic and Commercial below:

• Theory and Calculation of Contract Price Adjustment;

• Research

• Insight & analysis

• International trade analysis

• Economic impact assessments

• Commercial contracts

• Statistical analysis

• Trends evaluation

Publications

The EC Division publishes annual/quarterly State of the Metals and Engineering Sector Reports and monthly Price Movements Reports. Flagship product of PIPS ( Price and Index Pages )

Economic and Commercial Services

29 Contents Page LET US TAKE CARE
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OF
Contact our expert Eleen Snyman Economic and Commercial Officer eleen@seifsa.co.za

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OF

HUMAN CAPITAL AND SKILLS DEVELOPMENT NEEDS

TRAINING CONSULTANCY PUBLICATIONS

Training and consulancy

We can consult and train on any of the matters of Human Capital and Skills Development below:

• Skills Development Facilitator (SDF), Facilitator, Supervisory, Assessor, Moderator;

• Skills development Committee Training;

• How to earn maximum B-BBEE points through skills development;

• Workplace Skills Plan (WSP);

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Human Capital and Skills Development Consultancy

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Visit our website for a range of Human Capital and Skills Development publications.

Contact our expert

The HC & SD Division has a network of Alliance Partners with a national footprint.

31 Contents Page LET US TAKE
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Lushaba Human
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zizile@seifsa.co.za
Zizile
Capital & Skills
Executive
32 Contents Page
Let’s unpack the constant referencing by our critics to an entry level rate of R 78.00 per hour On 1 July 2022 Rate H was increased by the second leg of the three-year deal concluded last year by R 3.15 raising Rate H from R 52.52 to R 55.67 per hour.
CONTEXTUALISING R78 PER HOUR Compared to the National Minimum Wage (R 23.19), Rate 1(a) Structural Engineering (R 45.91), Grade 1 Five Grade (R 51.41), Gate and Fence Manufacturing Rate H (R 41.80) or the Special Phasein Dispensation to reach 60% of the 2020 Rate H by 30 June 2024 (R 29.73) there is no denying, it is too high. In 1968 Rate H was 19c per hour. That was 54 years ago.

However, unlike most of our critics we haven’t been sitting on our hands all this time nor have we been negotiating with ourselves. Visit the SEIFSA Boardroom and view the names of SEIFSA Presidents, Captains of Industry, stretching back to 1944 and I would dare anyone to call any one of them weak.

Returning to R 78 per hour. In South Africa if one is not covered by a collective agreement, the Basic Conditions of Employment Act (BCEA) is applicable, in addition to binding statutory levies and contributions affecting all employers in a sector like ours.

So, how does one arrive at a Rate of R78 per hour? Simple, by applying the principle of total cost to employment.

It’s interesting to note that even if one had the freedom to pay National Minimum Wage or any other affordable rate, various cost to employment conditions contained in the BCEA, together with statutory levies and contributions, would still apply. Unfortunately, the notion of a free market, dictated by the natural laws of demand and supply, given our history and legacy, is just that – a notion. Since 1968 terms and conditions of employment in this sector have been bargained, fought for and begrudgingly agreed. Nothing was given away without difficult contestation.

Let’s examine in a little bit more detail the principle of total cost to employment.

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MAIN AGREEMENT TOTAL COST TO EMPLOYMENT: 2022 Main Agreement and BCEA* Cost to Company * Asterix denotes must be observed even if not covered by the Main Agreement 1. Annual Leave (15 days)* 6.41% 2. Additional annual leave (5 days on fourth time of 2.14% proceeding on leave) 3. Leave enhancement pay 8.33% 4. Paid sick leave (30 days in a 3-year cycle – effectively 4.27% 10 days per year)* 5. Sick Pay Fund contributions* 0.09% 6. Family Responsibility Leave (3 days)* 1.28% 7. Public holidays* 5.13% 8. Pension / Provident Fund Contributions* 7.70% 9. COIDA / WCA* 1.15% 10. UIF* 1.00% 11. Skills Development Levy* 1.00% Total additional cost to company 38.50%

Importantly, the above excludes: MEIBC Administration

Levy, MEIBC Dispute Levy, PPE, COVID Compliance etc. which must be paid whether or not one is covered by the Main Agreement – so, let’s round the CTC to 40% i.e., a 40% add on to the base rate of R 55.67 – which takes you to approx. R 77.93

be reviewed but alas we would rather spend all our time and energy fighting each other in the Courts, how short sighted.

However, keep in mind that if one were not covered by the Main Agreement all the above items denoted by an asterix would still apply, approx. 30%

Should you require any assistance on understanding any aspect of the recently gazetted Main Agreement, contact the SEIFSA Office on (011) 298-9400 and ask for Vuyiswa, Michael, Monica or Lucio - we will be more than happy to assist.

The point being that if one is going to blandly throw out a number, give it some context, narrative and explanation. Simply lamenting it’s too high is just not good enough. No one across all employer ranks is saying the current entry level rate is not too high. But there is context, history and narrative to this reality. In an ideal collective bargaining world this on its own would be enough to rally all employer groupings behind a single cause, a cause that seeks to ensure that if we stand any chance of encouraging entry of new workers into the industry, the entry level rate must

If you would like to find out a little bit more about the benefits of joining an Association federated to SEIFSA fill in the membership form, or send us an email at nuraan@ seifsa.co.za

Next week I will address the flexibility benefits contained in the Main Agreement, watch this space!

SPECIAL PHASE-IN DISPENSATION

Given that the Main Agreement was last gazette and extended in 2010 and many employers have been operating outside the terms and conditions of the Main Agreement – particularly when it comes to rates of pay – the signatories to the 2021/ 2024 Main Agreement agreed it would not be feasible or practical to expect these employers to come on board overnight. Hence, it was agreed that a phased approach would be needed and that this process would form part of a broader project aimed at eventually achieving parity with the Main Agreement. Phase-one of the project establishes the target of reaching 60% of the 2020 minimum rates of pay by 30 June 2024.

For purposes of illustration, below is the 2020 general wage table and the target of 60% to be reached by 30 June 2024.

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Rate Minimum Wage 60% of 2020 Minimum Rates as at 1 July Wage Structure

2020

A 84,75 50,85

AA (6) 80,83 48,50

AA (start) 77,18 46,31

AB 73,73 44,24 B 70,53 42,32

C 67,96 40,78

D 66,58 39,95

DD 61,76 37,06

DDD 59,10 35,46

E 56,47 33,88

F 54,10 32,46

G 51,65 30,99

H 49,55 29,73

For employers operating in terms of a special phasein license of exemption paying less than 60% of the

2020 wage rates will be required to implement the 1 July 2023 wage increases as a Rand/ cents increase on what workers are actually earning.

For employers paying above 60% but less than 100% of the 2020 rates, operating in terms of a special phase-in license of exemption, will be required to award the 1 July 2023 wage increases as a Rand/cents increase on what workers are actually earning and calculate leave pay and leave enhancement pay on workers actual rates of pay.

The next round of industry increases will become applicable on 1 July 2023 and will again, be awarded on a Rand/cent basis. Any employer wishing to apply for an exemption from these increases is at liberty to do so on or before 31 July 2023.

Should you require any assistance on applying for a Special Phase-in Exemption or any other matter covered by the Main Agreement, please contact the SEIFSA Office on (011) 298-9400 and ask for Vuyiswa, Michael, Monica or Lucio - we will be more than happy to assist.

In light of the above, the MEIBC National Exemptions Policy has been amended by way of the insertion of a new section dealing with Phase-In Exemption.

The same principle applies across all the main agreement wage tables (i.e., electric cable; structural engineering; five grade; vehicle drivers; gate and fence manufacturing – but excluding apprentices and construction sites covered by a project labour agreement).

In broad terms the special phase-in license of exemption will stipulate that notwithstanding that an employer is paying below 60% of the 2020 rates (as per the table above), leave pay and leave enhancement pay must be calculated on the 60% rate as set-out above.

This new clause, referencing the Special Phase-In Exemption, is available to all employers covered by the scope of application of the Main Agreement, regardless of whether or not they are members of a party or non-party employer organization.

If you would like to find out a little bit more about the benefits of joining an Association federated to SEIFSA fill in the membership form, or send us an email at nuraan@seifsa.co.za

Next week I will address the elephant in the room, R78 per hour, watch this space!

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FLEXIBILITY and The Main Agreement

The Main Agreement does provide for a set of default conditions of employment and if an employer is happy to work a traditional fiveday work week, default Main Agreement terms and conditions are all encompassing and there shouldn’t be any matter in a traditional setting the Main Agreement does not cater for.

One of the biggest criticisms of the Main Agreement, besides wages, is the perception the Main Agreement is far too rigid and does not cater for the need to work alternative working time arrangements.

Perceptions, as we know, more often than not, inform reality, but in this case, reality is something completely different.

However, what if an employer is looking to move away from the traditional to something completely different and unique, what then? Clause 4 of the Main Agreement, hours of work, contains a gem of a provision dealing with alternative working time arrangements. This sub-clause was introduced into the Main Agreement during the 1999 round of Main Agreement negotiations and specifically commits employer and union parties to unreservedly supporting the introduction of flexible working time arrangements at individual companies in the industry.

In fact, the Main Agreement goes further to state, “the union and employer parties have agreed that management and workers, at individual company level, should be encouraged to adopt a flexible approach to the arrangement of their actual working hours, including annualization, averaging and/or the introduction of other flexible working time arrangements of mutual benefit to management and workers at these companies.”

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The nature and extent of these alternative working arrangements may include and are not limited to:

annualization (i.e., the calculation of an employee’s hours on an annual basis); averaging of the work week; working an unpaid additional hour each week during the year in return for an agreed number of additional days paid annual leave; the operation of shifts at ordinary rates over weekends; compressed working week (i.e., employees work up to 12 hours per day without receiving overtime payment in return for a shorter work week); and any other alternative working time arrangement agreed between workers and management.

The last bullet point requires some repeating! Any other alternative working time arrangement agreed between workers and management.

Some employers may baulk at the words agreed between workers and management; however, the reality is this is an in-house or in-company conversation, requiring no need to apply for an exemption etc. All that is needed is the details of the agreed working time arrangements to be recorded in writing and signed by the representatives of the affected parties.

If you don’t already have a copy of the 2022/23 SEIFSA Main Agreement Handbook, which summarizes the 300 plus pages of the recently gazetted Main Agreement into a user friendly, easy to read handbook, now is the time to get one. If you wish to order the latest SEIFSA Main Agreement Handbook, click here If you would like to find out a little bit more about the benefits of joining an Association federated to SEIFSA fill in the membership form, or send us an email at nuraan@ seifsa.co.za

Contrary to perception, the Main Agreement caters for both the traditional and those who wish to break-out of the old into the new. As was said during the 1999 round of Main Agreement negotiations, of which I was privileged to be part, moving out of Jurassic Park to Star Wars!

Next week I will address the perception that the Main Agreement does not address productivity or the link between performance and reward, watch this space!

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LET US TAKE CARE OF YOUR INDUSTRIAL RELATIONS AND LABOUR LAW NEEDS

TRAINING CONSULTANCY PUBLICATIONS

Training and consulancy

We consult and train on any of the matters below:

• Main Agreement;

• Grading;

• Chairing disciplinary enquiries;

• Shopfloor;

• Arbitration;

• Basic Conditions of Employment Act / employment contracts;

• Sick Leave and Absenteesm;

• Equal Pay for Equal Value Provisions;

• Labour Law matters;

• Dispute resolution;

• Conciliation;

• Labour Court;

• Retrenchments.

Contact our Experts

Publications

Visit our website for a range of Industrial and Labour Law publications

Industrial Relations Services

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Vuyiswa Miya Industrial Relations Executive vuyiswa@seifsa.co.za Michael Lavender Industrial Relations Manager michaell@seifsa.co.za

EVENT DURATION 1 day 1 day 1/2 day 1/2 day 1 day 2 days 1/2 day 3 days 1 day 1 day 1 day 1/2 day 1/2 day 5 days 1 day 1 day 1 day 1 day

LOCATION

Webinar F2F Webinar Webinar MS Teams Webinar/ F2F Webinar Webinar/ F2F Webinar SEIFSA Webinar Webinar Webinar Webinar/ F2F MS Teams Webinar Webinar F2F

EVENT DURATION 3 days 1 day 1 day 1 day 1/2 day 1 day 1 day 1/2 day 1 day 1 day 1/2 day 1 day 1/2 day 5 days 1 day 1/2 day

DATE 1 1 1 2 7 7 9 10 14 16 17 23 23 27 28 29 LOCATION 2023 Upcoming SEIFSA
To book, please email sales@seifsa.co.za (011) 298-9400 or make an online booking www.seifsa.co.za Feb - Mar DATE 1 2 3 7 7 9 10 13 14 14 15 16 17 20 21 22 22 28
MONTH February MONTH
Workshops / Events
March
WORKSHOP/
WORKSHOP/
DATE 2 4 8 9 10 15 15 16 17 18 19 23 23 25 29 30 LOCATION 2023 Upcoming SEIFSA Workshops / Events To book, please email sales@seifsa.co.za (011) 298-9400 or make an online booking www.seifsa.co.za Apr - May DATE 3 4 6 11 11 12 14 18 18 1820 25 25 28 30 May MONTH April MONTH WORKSHOP/ EVENT DURATION
WORKSHOP/ EVENT DURATION
LOCATION F2F MS
Webinar
F2F
MS
F2F
1 day 1 day 3 days 1 day 1/2 day 5 days 3 days 1 day 1 day 1/2 day 1/2 day 2 days 1 day 1/2 day 1 day 1 day
1 day 1 day 1 day 3 days 1 day 1 day 1/2 day 1 day 2 days 1 day 1/2 day 1/2 day 1 day 1 day
Teams
Webinar/ F2F Webinar
Afrique Boutique F2F Webinar/ F2F SEIFSA Webinar Webinar
Teams
2023 Upcoming SEIFSA Workshops / Events For more information on these trainings, please email sales@seifsa.co.za (011) 298-9400 SAFETY, HEALTH, ENVIRONMENT & QUALITY
By partnering and collaborating with CSG Resourcing, we support our clients with capacity creation to focus on their core business. Integral to the success of CSG Resourcing, is our belief in building relationships, empowering our people and effective communication. CONTACT US ONE BRAND FOR ALL TALENT SOLUTIONS An extensive database of quality and reliable staff on short notice Quick deployment of staff to site One point of contact for all temporary employment services DAVE WALLACE Kwa-Zulu Natal Regional Manager M: +27 74 459 5555 E: dwallace@csggroup.co.za TK MAHLANGU Mpumalanga Regional Manager M: +27 67 054 9838 E: tmahlangu@csggroup.co.za ROUCHE KLEYNHANS Gauteng Regional Manager M: +27 76 337 7894 E: rkleynhans@csggroup.co.za JANNIE FOURIE Northern Cape Regional Manager M: +27 72 596 1655 E: jfourie@csggroup.co.za PIETER SCHOEMAN Western Cape Regional Manager M: +27 61 065 1516 E: pschoeman@csggroup.co.za HEAD OFFICE Pretoria T: +27 12 362 9778 E: info@csgresourcing.co.za

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