DATE : 14 September 2004
Johannesburg NUMSA PRESS RELEASE – FOR IMMEDIATE RELEASE
NUMSA TO SIGN MOTOR RETAIL AGREEMENT THAT WILL CUSHION WAGES BY 7,5%.
Today, the National Union of Metalworkers of South Africa (NUMSA), the Fuel Retailers Association (FRA) and the Retail Motor Industry (RMI) will sign a three year wage deal. The wage agreement will cushion the wages of motor retail workers by 7,5%. The agreement will cover 180 000 workers in the petrol stations, component manufacturing, car dealer shops and panel beating shops. The wage deal was ratified by motor retail workers. The agreement will be signed by parties at 01h00, Garden Court (Old Airport Sun) , Isando, Kempton Park. The agreement will be concluded in good spirit with some useful wage results for motor retail workers.
Three year agreement, commencing 1 September 2004 to 31 August 2007.
Wage increases on actual rates of pay of 7,5% in one year, CPIX for June 2005 plus 1% in year two ; and CPIX for June 2006 plus 2% in year three.
Capping parameters of 5% and 9% will apply during year two or three i.e should the CPIX plus 1% in year two and/or CPIX plus 2% in year three fall below 5% or exceed 9% then the increase in that year will be fixed at either 5% or 9%.
Leave bonus will now increase from two weeks to three weeks in year two.
The parties will jointly participate towards a speedy resolution on the Agency Shop Agreement in order to expedite the submission of the agreement for gazzetting and extension to the entire industry.
Workers will produce medical certificate or other satisfactory evidence within a specified period of sick leave.
After four months of sometimes heated discussions and deliberation, the parties will sign and conclude the agreement with some encouraging wage results. The wage agreement is historic and significant in increasing the salaries of workers. It is the first long-term agreement in the industry. It is the first time that employers in the motor retail have recognized the idea of a multiyear agreement. It will give workers tangible improvements on their actual salaries and give stable benefits. There will be a comparable rise in the income of workers. We are committed in providing attractive wage packages and amassing more benefits for workers.
The economy is fast changing. The agreement will bring economic value to ordinary workers and set parameters or safeguards for inflation in the next coming years. Consumer price inflation is unpredictable and it changes every year. Workers are excited with the wage deal which is real and exceed the current inflation rate. It caters for steeper food and transport price hikes. Inflation targeting policy has not changed the behaviour of some economic actors. Therefore workers cannot accept wage restrains when the prices of food remain relatively high despite a drop in interest rates. So far, the signing of the deal will paint positive developments in the industry. At least the profit returns will now be distributed to the workers. We are now absolutely certain about the real wage increase. In this case, the union has added value on the wages of workers without taking serious strains.
The wage increase will go a long way in promoting change in the industry. Interestingly the agreement will explicitly promote, extend or create harmonious relationships in the long term. It embodies the parameters within which parties can function. The wage increases have become phenomenal and serve as a distributional factor in the mist of unemployment and poverty. Wage increases are a tool in increasing the value of salaries amongst the majority of the working people. The wage agreement will improve the conditions of workers. The agreement will be the best credit for motor retail workers.
For more information or interviews contact Dumisa Ntuli at (011) 689-1700 or 0829737282. website www.numsa.org.za