Labour Relations Act, 1995 (Act No. 66 of 1995)NoticesNational Bargaining Council of the Leather Industry of South Africa:Footwear SectionCollective Agreement8. Remuneration |
| 8.1 | Wages and Wage Rates |
| (1) | Subject to the provisions on short-time and exemptions as provided in clause 6.5 and 14, every employer shall pay an employee no less than the rates prescribed in Column A in the Annexures to this Agreement for the operation that the employee performs, provided that in Semi Formal Sector establishments, every employer shall pay an employee no less than 75% of the rates prescribed in Column A in the Annexures to this Agreement for the operation that the employee performs. |
| (a) | Any existing employer who qualifies to pay his/her employees the lower rate in terms of Clause 8.1(1) shall be required to conclude an agreement in terms of Clause 17(3) prior to implementing the lower rate. |
| (b) | In this event, both parties shall negotiate in good faith with a view to reaching an agreement in line with the aims and spirit of this agreement. |
| (c ) | Such an agreement to lower the wage rate shall endure for not less than twelve (12) months after signature thereof, and for not longer than thirty six (36) months altogether. |
| (d) | In the event that no agreement is reached, and a dispute is declared, that dispute shall be referred to the CCMA for arbitration. |
| (e) | As an alternative to sub-paragraph (d), the employer may apply for an exemption. |
| (f) | Emerging businesses and newcomers to the industry who fall within the semi-formal sector may be engaged at the appropriate rate as prescribed in Clause 8.1. |
| (2) | An employee shall be paid the rate listed in Column B (in the case of Semi Formal Sector establishments, 75% of the rate listed in Column B) in the Annexures where in any week he has not absented himself from work for any reason, except on instructions or by consent of the employer, or due to illness, or where the employee gives reasonable evidence for his absence which is acceptable to the employer. |
| (3) | Where an employee was absent due to illness, the employer may require a certificate, signed by a registered medical practitioner from the employee as proof of absence. |
| (4) | Where an employee arrives late for work in any week, but the time so lost is not more than 15 minutes in total, it shall not be considered absence for the purpose of subclause (2) |
| (5) | Where an employee feels aggrieved by a decision of an employer in terms of subclause (3) and (4), he may appeal to the District Committee of the Council for the area. The District Committee may confirm or amend the decision of the employer. |
| (6) | The prescribed wage rates are payable for a working week of 42 hours, except in the case of a watchman where it shall be for a 60 hour workweek, and an employee, other than one on shift work, on nightwork where it shall be for a 38 hour workweek. |
| (7) | Where the regular working hours of an establishment is less than that in (6), an employer may reduce the wages of employees proportionately, except in the case of a watchman. |
| (8) | Where a driver or an employee on shift-work on any day works less than the hours in (6), for reasons other than short-time, he shall be paid as though he worked the full hours for the day. |
| (9) | Every individual employee shall be paid his remuneration in cash on a weekly basis during the ordinary working hours of an establishment and not later than Friday, save as may be amended in terms of clause 17. |
| (10) | Remuneration details shall reflect the following: |
Name of employer |
|
Name of Employee and factory number |
|
Wage rate |
R |
Hours worked (excluding overtime) |
R |
Wages due |
R |
Remuneration for Sunday work |
R |
Overtime |
R |
Supplementary wages |
R |
TOTAL |
R |
|
|
Deductions: |
|
Unemployment Insurance fund |
R |
Sick Benefit Fund |
R |
Provident fund |
R |
Insurance or pension |
R |
Trade union subscription |
R |
Council levies |
R |
Savings or other deductions |
R |
TOTAL DEDUCTIONS |
R |
|
|
Net Remuneration |
R |
Date |
|
| (11) | Deductions |
No deductions may be made from the wages of an employee except:
| (a) | deductions required or permitted in terms of this Agreement or any benefit Fund agreement of the Council, or any law or order of court; |
| (b) | with the written consent of the employee. |
| (c) | subject to subclauses (7) and (8) above and 7.4, where an employee is absent form work other than at the request or on instructions of an employer, a pro rata amount for the period of such absence; |
| (12) | Nothing in this agreement shall operate to reduce any time wage at present being paid to an employee which is more favourable than that laid down in this Agreement while such employee remains in the service of the same employer. |
| (13) | Premium Wage Rate |
A premium is the difference between an employee’s actual wage and the prescribed wage in terms of this Agreement. An employee, other than a learner, is entitled to continue receiving this premium while he is employed on the same operation with the same employer, and such premium may not be offset against any increases granted in terms of any amendments to this Agreement.
| (14) | To determine an employee’s actual wage for purposes of (14), special bonus payments, overtime and payments in terms of an incentive scheme shall not be taken into account. |
| (15) | Where a female employee returning from maternity leave is re-engaged on an operation for which a lower rate is prescribed than the operation on which she worked before she went on maternity leave, the difference in the rate which she is paid shall not be a premium. |
| (16) | Phasing-In Period |
All employers who previously operated outside the Council’s geographical scope as at 8 February 2001, and who are paying wages less than those prescribed in the annexures to this agreement, will be granted a concession allowing them to phase in the increase of the wage rates to the levels of those prescribed in the annexures to the agreement in terms of the under-mentioned time table.
From 1 July 2006 |
- not less than 25% of prescribed rate |
From 1 July 2007 |
- not less than 50% of prescribed rate |
From 1 July 2008 |
- not less than 75% of prescribed rate |
From 1 July 2009 |
- not less than 100% compliance with prescribed wage rates |
Notwithstanding the aforementioned, all employees should receive all negotiated increases during the actual phasing in period.
| (17) | Notwithstanding the provisions made in clause 8, every employer must pay each employee no less than the National Minimum Wage as prescribed in the National Minimum Wage Act. |
[Section 8 (8.1)(17) inserted by section 4 of Notice No. R.1382, GG42789, dated 25 October 2019]
| 8.2 | Overtime rates |
| (1) | An employer shall pay an employee, except a watchman, who works overtime at one and a half times his hourly rate where such overtime is worked during Monday to Saturday. |
| (2) | Payment of the overtime rate shall be subject to the employee completing his/her ordinary hours of work as provided for in Clause 6.1 or in terms of an agreement concluded in accordance with the provision of Clause 17(1) of the Agreement Provided that where shift work is performed in such an establishment, the employer may require the employees engaged on a shift which commences and ends between 06h00 and 18h00 to complete the normal week of 42 hours, or in terms of an agreement concluded in accordance with the provision of Clause 17(1) of the Agreement, by working not more than four and a half hours on a Saturday morning. |
| (3) | For the purpose of determining overtime worked in any pay work any unauthorized leave/absence will be excluded in calculation of such ordinary hours of work. |
| (4) | Where an employee works overtime on a Sunday, he shall be paid: |
| (a) | at one and a third times his hourly rate and given a days’ paid leave within seven days of such Sunday; or |
| (b) | where he worked less than 4 hours overtime, his basic daily wage; or |
| (c) | where he worked more than 4 hours overtime, the greater of— |
| (i) | double his hourly rate for the period worked; or |
| (ii) | double his basic daily wage. |
| (5) | Where an employee is not paid on the basis of actual time worked, his hourly rate for the purpose of this clause shall be calculated by dividing his total remuneration over three months, or over his total period of employment, whichever is the shorter, by the number of hours worked over the same period. |
| (6) | A watchman shall be paid overtime at one and a half times his hourly rate where he works for longer than 12 hours in a period of 24 hours. Where he is required to work during his rest period, he shall be paid at double his hourly rate. |
| 8.3 | Wage Incentive or other Bonus Schemes |
| (1) | An employer may only operate a wage incentive scheme, whether it is based on a piece-work system or otherwise, by agreement in terms of clause 17. |
| 8.4 | Differential wage rates |
(1)
| (a) | An employee may not be required to perform more than two operations in the Clicking, Rough stuff, Making and Finishing Departments for which a wage of more than the minimum wage rate for the relevant occupation in the relevant establishment as prescribed in Column A of the Annexures to this Agreement. |
| (b) | An employee who is employed on any two such operations shall be paid for every hour or part of an hour worked on each operation at not less than the hourly rate applicable to each operation. Where an employee, however, works for more than 4 hours in a week on each of two operations, he shall be paid at the higher rate for at least half his time. Should an employee in such instance work overtime on the lesser paid operation, he shall be paid half his overtime at the higher rate. |
| (2) | Where an employee is employed on any day on any operation in the Clicking, Rough stuff, Making and Finishing Departments for which a wage of more than the minimum wage rate for the relevant occupation in the relevant establishment as prescribed in Column A, as well as on an operation for which a wage of less than the minimum wage rate for the relevant occupation in the relevant establishment is prescribed, he shall be paid at the rate for the higher paid operation so performed for the whole day. |
| (3) | A qualified employee who performs more than one operation in the Closing Department in any one week shall be paid at the rate for the higher paid operation for the whole time so worked. |
| (4) | Record keeping |
| (a) | A differential wage book in the form of Annexure E shall be kept for every employee who works on different operations in terms of this clause. The book shall be kept by the employee and the employer shall enter the operation and the starting and finishing times into the book. The employee shall hand the book to the employer when required for record purposes. |
| (b) | Where the employer fails to keep records in terms of (a) above, he shall pay the employee at the higher rate for the total time worked in that week. |
| (5) | Where an employee works for more than 30 consecutive days on more than one operation for which different rates are prescribed, he shall be paid the highest prescribed rate applicable to the operations performed by him. |
| 8.5 | Holiday Bonus |
| (1) | Every employee who has completed 12 consecutive months of employment with the same employer when the establishment closes for the annual leave period, shall be entitled to payment of a holiday bonus equal to seven days remuneration |
[Section 8(8.5)(1) substituted by section 4 of Notice No. R.1382, GG42789, dated 25 October 2019]
| (2) | An employee who has not completed 12 consecutive months with the same employer when the establishment closes for the annual leave period, shall be entitled to payment of one twelfth of the holiday bonus for every month of employment. |
| (3) | For the purpose of calculation of the period of employment, an employee shall be deemed to have 12 consecutive months employment if his employment commenced when the establishment re-opened after the annual leave period and if he is still in employment when the establishment closes for the next annual leave period. |
| (4) | Employment for 15 consecutive calendar days shall be considered employment for a full month for the purpose of calculating the holiday bonus. |
| (5) | The holiday bonus shall be paid to employees by no later than one day prior to the commencement of the annual leave period. |
| 8.6 | Long Service Bonus |
| (1) | Every employee who has completed 5 years continuous employment or longer with the same employer shall annually be paid a long service bonus as follows: |
Between 5 and 10 years employment................... |
2 days’ wages |
Between 10 and 15 years employment................. |
3 days’ wages |
Between 15 and 20 years employment................. |
4 days’ wages |
Between 20 and 25 years employment................. |
5 days’ wages |
25 years employment and longer......................... |
6 days’ wages |
| (2) | For the purpose of calculating the long service bonus, one day’s wage shall mean one fifth of the weekly wage. |
| (3) | The long service bonus shall be paid to employees no later than the last working day before the annual leave period. |
| (4) | Payment of the long service bonus shall be contained in a separate pay envelope reflecting full details of the method of calculation of such payment. |
| 8.7 | Special Bonus |
| (1) | An employer shall pay every employee a special bonus of 2 ½ % of the ordinary wage rate of an employee. |
| (2) | The provision in (1) shall not apply where an employee is on a wage incentive scheme through which he earns at least 2 ½ % of his wage rate in addition to his ordinary wage. |
| (3) | Where an employee earns less than 2 ½ % through a wage incentive scheme in addition to his basic wage, the employer shall pay him the special bonus in lieu of payment in terms of the incentive scheme. |
| 8.8 | Payment of Annual Leave Allowance |
| (1) | The Annual Leave Allowance shall be paid to employees by no later than one day prior to the commencement of the Annual Leave period. |
| (2) | Payslips/salary advice for the Annual Leave Allowance shall be issued to employees by no later than three days prior to the commencement of the Annual Leave period. |
[Section 8(8.8) substituted by section 3 of Notice No. R.4040, GG49618, dated 10 November 2023]