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Collective Bargaining: House Agreement consolidation – why no progress?

By: Mdu Ntuli

House Agreement companies by their nature are stable and most are big companies, therefore they offer job security to the labour market in our sector.

Looking at the list of who’s who in the House Agreement, one can safely say this section is an “˜elite’.

Why are they not part of the main agreement (MA) that covers all the engineering sector?

The reason for this is two-fold: first being the attitudes and perceptions of general members and shop stewards and second being that of employers towards centralised bargaining.

Let’s look at shop stewards’ attitudes and perceptions. The bargaining process is the core function of the union. Shop stewards together with union officials execute this process.

Therefore if you were to remove this process from shop stewards at plant level, you would be removing their most important function. They would just be reduced to hearing and monitoring the agreement.

The attitudes of the workers stem from the attitudes and perceptions of the shop stewards plus the ignorance on their part on what the Main Agreement consists of. They fear an erosion of benefits if they were to move to centralised bargaining.

The attitudes of the employers stem from fear of solidarity of the workers, the might of Numsa at centralised bargaining level and the fact that they know, on some sections of their agreements, they give less when compared to the Main Agreement.

The table below summarises some of the key conditions found in the Main Agreement (MA) as compared with House Agreements. Check the MA conditions against yours and you decide which one is superior!

Which is better – House Agreement (HA) or Main Agreement (MA)?

Check the MA conditions against yours and you decide which one is superior.

MA Conditions

Best

Worst

Hours of work

40 hours

Main Agreement plus all other HA companies (except for Iscor and Assmang Aluminium) – 40 hours

Iscor – 45 hours + 3 hours compulsory overtime

Assmang Aluminium 40 normal hours and 2 hours overtime

Night shift

Normal + 15%

Hulett 20%

Iscor = nothing

Day Shift

Normal + 7,5%

Hulett = 15%

Iscor = nothing

Payment for work on Sundays

2 x normal rate of pay

MA, Hulett, Highveld Steel, Columbus = 2 x normal rate of pay

Iscor, Hillside , Bayside = 1,5 x normal

Payment for work on public holidays

1.33 x normal

Hillside = 2,5 x normal

MA = normal x 1.33

Overtime payment

1.5 x normal

MA plus all other HA companies except Columbus = 1,5 x normal

Columbus ; first 6 hours = 1.33 x normal; thereafter 1.5 x normal

Paid annual leave

3 consecutive weeks per annum

MA, Iscor = 21 days

Hillside , Bayside = 25 days after 5 years service

Highveld Steel = 14 days

Maternity leave

6 months unpaid after 1 year service. If she is a member of the Engineering Sick Pay Fund she can claim 50% of her wage for up to 130 days.

Columbus = 4 months paid, 1 month annual leave, 1 month unpaid

Hulett (not covered)

Paid sick leave

30 working days in 3 year cycle (5-day work-week); 36 working days in 3-year cycle (6-day work-week)

Highveld Steel = 30 working days after completing 6 months continuous service

MA, Iscor, Hulett

Family responsibility leave

3 days per annual cycle

Columbus Steel = 5 days per occurrence (in case of death of direct family member)

MA, Iscor, Hulett,

Termination of employment

2 weeks notice after 6 months employment

Hillside , Bayside, Highveld Steel = 30 days

Hulett = one working day’s notice

Severance payment

1 week’s wages per year of service plus weekly contribution to any applicable employee benefit fund for each completed year

Bayside = 12 working days per completed years + 42 days salary in lieu of notice + R10 000 training grant

Highveld Steel = 1 weeks wages for each year of service

Insurance of tools

Max R2000 cover

Hulett = R5000 maximum cover

Hillside = not covered

The information in the table is taken from a study done in 2004 by the Labour Research Service for the Metal and Engineering Industries Bargaining Council: A Comparative Study of the Terms and Conditions of Employment between the Main Agreement and Selected House Agreements in the Metal and Engineering Sector in South Africa.

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