The NBF agreements between AMEO and NUMSA were signed on September 12, 2019, but the wage increase will be retroactive from July 1, 2019. This is the third time that the negotiations have concluded without union action. The Automobile Manufacturers Association (AMEO) has signed a new three-year collective agreement with the National Union of Metalworkers of South Africa (Numsa). The agreement will help South African-based vehicle manufacturers achieve long-term planning, model allocation and volume planning, he adds. The collective agreement provided that “meals are an operating provision that is intended to allow public service employees to source supplies and therefore does not constitute a clause and condition of employment.” As such, the “meal allowance” should be treated at the MCF and not at the NBF. The term “substantive issues” has been defined in the Constitution as “any issue of mutual interest or any issue relating to the conditions of employment of workers or a substantive agreement between the ASA and the unions, or any other issue that has a financial impact that is not covered by workers` employment contracts.” In the context of the recent extension of the automotive industry and production and development (APDP) programme to 2035, the success of the wage and employment negotiations for the next three years will create a much-needed platform for stability and political security in the automotive industry. The agreement will help South African-based OEMs achieve long-term planning, modeling and volume planning. NUMSA and UASA have jointly entered into a collective agreement with SAA within the NBF. This collective agreement was a collective agreement within the meaning of Labour Relations Act 66 of 1995 (“LRA”). The collective agreement was extended to other unions, including SACCA, in section 23, paragraph 1, point d), of the LRA.
The collective agreement applied from April 1, 2016 to March 31, 2017. The fact that a collective agreement is concluded between a majority union and an employer, but is extended to a minority union, may prevent the minority union from going on strike. The agreement binds producers and workers for the next three years. The number of associate employees is increased by 9% in the first year, and for the second and third year of the agreement, they receive and increase according to the consumer price index or 7%, depending on the highest value. The Automobile Manufacturers and Employers Association (AMEO) has successfully concluded negotiations at the National Bargaining Forum 2019 with the National Union of Metalworkers of South Africa (NUMSA) with the signing of a three-year contract. The issue of increasing international food premiums subsequently became a point of disagreement between the ASA and the SACCA. On June 10, 2016, SACCA approached the CCMA to determine whether, among other things, the collective agreement had been extended to it and, if so, whether the collective agreement complied with the terms of the labour dispute between the ASA and the SACCA. The CCMA agreed. On September 14, 2016, SACCA referred to the CCMA a refusal of negotiations/disputes over mutual interests. The ASA responded by referring to a dispute over the interpretation and application of the collective agreement on the same day. Disputes have been consolidated. The consolidated dispute was then resolved on the grounds that the parties would have “objective discussions” on the refusal to increase international food premiums.
After discussions with the ASA were fruitless, the SACCA drew the CCMA`s attention to a new dispute over mutual interests regarding the increase in food benefits.