The Motor Industry Discriminatory Clause and Disproportionate Income Differentials

1. The Motor Industry Discriminatory Clause and Disproportionate Income Differentials Presented by Elias Kubheka ( NUMSA OCCB Department)

2. Introduction • NUMSA was instrumental in the development of the EEA, BEE ACT and the Skills Development Act (SDA) through the Research & Development Groups (RDGs) • It followed naturally that the provisions of these acts would feature in collective bargaining rounds to give effect to these laws. • Demands submitted in the periods 2004 – 2010 Motor Industry Bargaining Council Negotiations in pursuit of Employment Equity Act compliance.

3. Discriminatory clauses in the Motor Industry Agreements • Employment Equity and Removal of Discriminatory Clauses • Removal of all Discriminatory clauses in all Council Agreements and commitment to implement Employment Equity Act and its related codes of good practice. • Application of the Basic Conditions of Employment Act • The more favourable conditions of employment in the Act shall take precedence and apply in all council agreements.

4. DISCRIMINATORY CLAUSES IDENTIFIED BY NUMSA 2013 ( Part 1_ ) MAIN AGREEMENT • DEFINITION: Clauses in the Main Agreement that provide worse conditions of employment to some workers as compared to others, without any valid, just and/or objective reasons, which amounts to unfair discrimination. • Employment Equity Act Chapter 2 Sections 5 and 6 specifically provide for elimination and prohibition of unfair discrimination • 1. SCOPE OF APPLICATION • Division A, Division B have different scope of application. • 2. AREA DIFFERENTIALS • Area A wages are higher than other areas (All Divisions) • 3. DIVISION A – CLAUSE 9 SPECIAL PROVISIONS RELATING TO WATCHMEN • Minimum wage, hours of work and overtime are different from other classes of workers in the Industry.

5. DISCRIMINATORY CLAUSES IDENTIFIED BY NUMSA 2013 ( Part 2_ ) • DIVISION A – CLAUSE 27 • Additional Holiday Pay to grades 7, 8 and apprentices. • 5. CLAUSE 18 – HOURS OF WORK – Refer to “workshop employees” • Sub-clauses 18(1)(, (2), (3), (4) • Clause 18(3) – excludes forecourt attendants from provisions of the sub clauses. • Clauses 18(4)(f) exclude forecourt attendants from receiving a shift allowance. • Clause 18(5) exclude supply salesman in Chapters I and IV Division C from morning and afternoon 10 minutes rests. • Clause 18(8)(a – e) different classes of workers entitled to 45 hours pay during short-time in some Chapters and Divisions. Exclude those not stated. • 6. DIVISION A – CLAUSE 19 - OVERTIME • Clause 19(2)(a) excludes workers identified in sub clause 1(3) and (b) of Division A from working maximum 10 hours overtime. • Clause 19(2)(b) – Additional 10 hours overtime by workshop employees only in Chapters II, III & V of Division C. • Clause 19(4) – Different rates of overtime for different class of workers in Divisions and Chapters. • Clause 19(5) – Exclusion of subclasses of 18(1) – (4) in Chapters III and V for emergency work.

6. DISCRIMINATORY CLAUSES IDENTIFIED BY NUMSA 2013 ( Part 3_ ) • DIVISION A – CLAUSE 20 – SHIFT WORK • Clause 20(1) – Apply only to some Chapters – Division C. • Clause 18(2) – No shift work only in some Chapters • Clause 20(3) – Sunday shift work only in Chapter III and V of Division C. • 8. SUNDAY WORK – CLAUSE 21 • Clause 21(1) exclude journeyman from Sunday work • Clause 21(2) has different rates for different categories. • 9. STAND-BY AND CALL-OUT ALLOWANCES • Allowances are only applicable to journeymen. • 10. SUPPLY OF OVERALLS – CLAUSE 24 • Clause 24(1) excludes other classes/categories from receiving overalls. • 11. ADDITIONAL HOLIDAY PAY –CLAUSE 27 – DIVISION B • Additional Holiday Pay applicable to journeymen and 2 weeks holiday pay for other categories. 3 weeks for Chapter III. Restriction on AHP.

7. DISCRIMINATORY CLAUSES IDENTIFIED BY NUMSA 2013 ( Part 4_ ) • 12. DIVISION B • Scope of Application – Clause 1. • Clause 1(2)(a) • 13. ANNUAL LEAVE – CLAUSE 26 • Sub clause 2(b) Schedule (aa) and (bb): • Different qualification conditions. • ADMINISTRATIVE AGREEMENT • 1.CLAUSE 16 – CONTINGENCY RESERVE FUNDS • Covers only Grades 7 and 8, excludes other categories of workers. • PLEASE NOTE: Included are the Employment Equity Act, Chapter II, Sections 5, 6 and 7 relating to Prohibition of Unfair Discrimination.

8. Income Differentials in the Motor Industry: EEA Sec. 27 • The aim in dealing with income differentials were in pursuit of closing the wage gap and to advance our conviction that rand & cents increases will help in this regard, versus the percentage increases that perpetuates this wage gap and continue to pay the higher earners even much higher that the lower earners. This has given us even more startling disparities as seen in the enclosed data: • The workers in the lower grade occupations are mostly on minimum rates, some are mostly underpaid; • Workers who are non-union members are majority on minimum or below minimum; • Worker in division B are mostly above the minimum rates of the grade/ occupation ; • MISA members are mostly above the minimum rates of the occupation compared to Numsa members. Why are there still discriminatory clauses and large wage differentials in the Motor Industry Agreements and in practice respectively? • Historical Racially discriminatory laws and exclusion of worker rights for black workers; • History of bargaining council parties in line with the above laws: MIBCO was established in 1952, at the height of racial job reservation; • Intransigence of employer parties who are still as conservative as the 1950s; • Collusion with predominantly white trade unions; • Employment Equity Commission being toothless to act against blatant regulated discrimination;

9. What needs to be done? • The law must make the DoL CEE to actively review all Agreements to remove discriminatory clauses; • The government needs to provide for monitoring & enforcement of transformation laws by the central bargaining fora/forums, under the supervision of the relevant government department; e.g. DHET – SDA; EEA – DoL CEE; BBBEE – DTI, etc. • Law must make it compulsory for the Collective Bargaining Institutions to collect the Demographic & income data

10. We are willing to take any questions of clarity • We appreciate you audience and hope the input contributes to finding lasting solutions to social justice & equity problems in our industries and the country.

11. AMANDLA!!!!!!!!! THANK YOU !!!!