1. Objective
Subject to the provisions of clause 37 of the Main Agreement, an employer, his employees, any employee representative body and any trade unions representing the affected employees may, by mutual agreement, enter into voluntary negotiations to conclude a productivity agreement with the objective of achieving measurable improvements in productivity performance and work life at company level in terms of the principles and guidelines contained in this Annexure.
2. Productivity Guidelines
An opportunity exists for employers, employees, trade union representatives and other employee representative bodies to negotiate agreements, at company level, with the objective of achieving measurable improvements in productive performance, increase productivity, efficiency, effective utilisation of all resources, flexibility and other related objectives. The negotiations to achieve these objectives should be conducted in accordance with the following principles and guidelines:-
| (a) | No party may adopt one element of the five grade job and wage structure agreement annexed to this agreement without adopting all of the other components of that agreement, namely:- |
| (i) | Multi-skilling/multi-tasking/flexibility; |
| (ii) | The five grade job and wage model; and |
| (iii) | Job security as set out in the five grade job and wage structure agreement. |
| (b) | It is however recognised, in terms of the five grade job and wage structure agreement that any job requires a degree of flexibility to meet normal operational requirements and changes. Under normal circumstances, this flexibility will therefore not, for purposes of (a) above, constitute an element of the job and wage structure agreement. |
| (c) | Any wage increases, benefit improvements and/or improvements to any other working conditions and conditions of employment negotiated in terms of the productivity improvement agreement must be directly linked to measures designed and agreed by the employer, employees, trade union representatives and other employee representative bodies to achieve real gains in productivity, efficiency, effective utilisation of all resources, flexibility and other related objectives. Any wage and/or benefit increases resulting from productivity gains shall be shared among the workers concerned. These gains shall be reflected separately from normal earnings. At company-level the parties shall determine how these productivity gains will be shared. |
| (d) | All work re-organisation and other related issues undertaken within the context of this clause shall be a matter for negotiations including new methods and approaches to work and work organisation. |
| (e) | Changes negotiated in terms of this procedure at the workplace, must be genuine, be in accordance with the objectives and principles of this Annexure, be designed to improve efficiency and enhance productivity and living standards without compromising health, safety and environmental standards. |
| (f) | It is the express intention of the parties to the Bargaining Council that the decision whether or not to negotiate and introduce productivity and efficiency improvement agreements at company level should be a voluntary one on both sides. |
| (g) | Any productivity agreement concluded, in terms of this agreement, shall be recorded in writing and signed by the employer, any trade unions representing the affected employees and/or employee representative body and should contain the following elements:- |
| (i) | The parties to the agreement including any representative trade unions and employee representative bodies; |
| (ii) | The date of the implementation, period of operation, termination provisions and renegotiation of productivity targets where appropriate; |
| (iii) | Details of the relevant wage increases, bonus, benefit improvement and/or improvements to any other working conditions and conditions of employment in accordance with the terms of the productivity improvement agreement; |
| (iv) | A commitment to the disclosure of any relevant available information appropriate to the attainment of the objectives of the productivity agreement in accordance with the provisions of the Act; |
(v) A statement of intent with regard to the overall purpose and objectives of the productivity agreement.
| (vi) | Any relevant productivity formulae, indices, standards, targets and/or objectives appropriate to the productivity agreement; |
| (vii) | A mechanism for evaluating the scheme on an on-going basis and for making adjustments in the light of developments and changing circumstances; |
| (viii) | A feedback and communication system to inform employees and their representatives of targets reached, standards met and the applicable incentive rewards; |
| (ix) | A dispute resolution procedure; and |
| (x) | Details of how the productivity gains will be shared at company-level. |
| 3. | Any agreement entered into in terms of this section shall be submitted to the National Bargaining Council for record purposes. |
