Motor Industry Bargaining Council: Fuel Retail Sector agreement

MOTOR INDUSTRY BARGAINING COUNCIL

FUEL RETAIL SECTOR AGREEMENT

Dear employer

The last round of substantive negotiations between employers and employees in the Motor Industry ended in dispute on Wednesday, 4 December 2019.

However, on 13 December 2019, the Fuel Retailers Association (FRA), Retail Motor Industry Organisation (RMI) and the National Union of Metalworkers of South Africa (NUMSA) reached and signed an agreement in respect of Sector 5 (Fuel Retail Sector). The terms of the agreement reached falls outside of the mandate received from NEASA members in the sector and therefore NEASA will not become a party to the abovementioned settlement agreement.

The duration of the agreement reached will be from the date of publication and extension thereof to non-parties by the Minister of Employment and Labour and will expire on 31 August 2022.

Increases in the remuneration of employees will be effective as from the date published in the Government Gazette by the Minister of Employment and Labour and will be subject to the Minister of Minerals and Energy approving and implementing a retail margin adjustment in order to compensate fuel retailers for the increases in remuneration during the duration of the agreement.

Therefore, NEASA members in the sector are not obligated to implement any increases unless and until the agreement is extended to non-parties by the Minister of Employment and Labour.

Increases in remuneration will be based on the current wage model (minima) for the following periods:

Year 1: 8%
Year 2: 7%
Year 3: 7%

We have identified some anomalies in respect of the wording of the set off and implementation clauses in the agreement, which are being addressed with the signatories thereto.

We will keep members abreast of developments in this regard.

Kind Regards
Gerald Leith
Collective Bargaining Coordinator

Privileged and challenged to be South African.
We are all in this together.