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Understanding the A pplication of Wages in the Motor Industry September 2012 – 31 August 2013

Understanding the A pplication of Wages in the Motor Industry September 2012 – 31 August 2013. Divisions of the Motor Industry.

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Understanding the A pplication of Wages in the Motor Industry September 2012 – 31 August 2013

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  1. Understanding the Application of Wages in the Motor IndustrySeptember 2012 – 31 August 2013

  2. Divisions of the Motor Industry Division A of the Main Agreement covers generic Conditions of Employment which are applicable to the motor industry other than those conditions which are specifically applicable to office, stores, sales and clerical employees. Division A also contains definitions and the grades of the various employees.

  3. Divisions of Motor Industry Division B – covers all wages and conditions of employment which are applicable to office, stores, sales and clerical employees.

  4. Divisions of the Motor Industry Division C – contains minimum wages for all employees excluding Office, Stores, sales and clerical employees.

  5. Divion C - Chapters Division C – is divided into five chapters: • Chapter 1 - The entire motor industry, other than those specifically covered in Chapters 2, 3, 4 and 5 • Chapter 2 – Vehicle Body Builders • Chapter 3 – Component Manufacturers • Chapter 4 – Automotive Engineering Establishments • Chapter 5 – Reconditioning Establishments

  6. Division D - Sectors Sector 1 – Manufacturing (Chapter III) Vehicle Body Building (Chapter II) Sector 2 – Remanufacturing Sector 3 – Engine Reconditioning Establishments Sector 4 – Workshops, Motorcycle dealers, Body repairers, tyre dealers etc. Sector 5 – Fuel Dealers Sector 6 – Dealerships Sector 7 – Parts and Equipment Dealers

  7. Grades of Employees excluding Division B Employees Grades of Employees are included in our circular. Please click link hereunder to access the information relating to the different Grades. http://www.rmi.org.za/wp-content/uploads/2012/08/WageSchedule-1September2012-31August20134final.pdf (Right click on link, select open hyperlink)

  8. Minimum Wages Minimum wages means that an employer may not pay a wage less than that which is prescribed for the particular grade or category of employee, unless the employer has obtained an exemption from MIBCO. Please note that Dealerships (Sector 6) employees have higher minimum wages than the rest of the industry.

  9. Guaranteed Monetary Increases Guaranteed monetary increases - the minimum monetary value of increases to be granted to employees who are earning above the minimum prescribed increases at the time when the agreement becomes effective. Guaranteed monetary increases are not applicable in dealerships (Sector 6) and Component Manufacturers (Chapter III).

  10. Actual Increases Component Manufacturing Establishments (Chapter III) grant actual percentage increases to employees below the threshold of R115 500 per annum.

  11. Effective Date The effective date of implementation is 1 September 2012, other than Forecourt Attendants and Cashiers at fuel retailers. The effective date of implementation for Forecourt Attendant wages and Cashiers employed at Service Stations is 5 September 2012.

  12. For further information, please contact your nearest Regional Office

  13. Prepared by: Aruna Ranchod- Director : Industrial Relations Claire Patterson – Director : Communications September 2012

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