Wage negotiations update: No response from RMI

19 October 2022

The Retail Motor Industry Organisation (RMI) has not yet responded to #MISA’s (the Motor Industry Staff Association’s) revised wage demand of 8,5% on minimum wages and assurance that the real take home pay is back to pre-pandemic levels.

#MISA revised the Union’s demands as a sign of the Union’s commitment to continue wage negotiations in good faith, to reach an agreementr to the benefit of its members.

#MISA members usually receiving their annual wage increase at the end of September 2022.

Some #MISA members reported that their employers paid wage increases ranging between 4% and 6,5% at the end of September 2022. They wanted to know how they will be impacted if the parties reach an agreement at the Motor Industry Bargaining Council (MIBCO).

Hermann Köstens, #MISA’s Chief Executive Officer: Strategy and Development, says there is an offsetting clause in the Main Agreement that makes provision for this situation.

“#MISA members should accept the increase. Should the settlement agreement be a higher wage increase than the one they received, Employers are compelled to pay the difference. Members will never forfeit the difference in the amount pertaining to any increase,” says Köstens.

According to him, Employers are currently under no obligation to implement any wage increase, because there is no MIBCO Wage Agreement. The Employer is only obligated to pay a wage increase if there is a contractual provision in the Employment Contract.

“Some employers do implement increases out of good will in the absence of a binding Collective Agreement. If this happens, the Employee should accept the increase and once there is an agreement in the wage negotiations, the increase implemented by the employer may be set off against the difference between the increase implemented and the final figure after the negotiations,” says Köstens.

RMI offers a multi-term agreement, with a 5,5% wage increase on minimum wages for year one, 4,5% for year two and 4 % for the third year for all the sectors, except Sector 5.

RMI and the Fuel Retailers Association (#FRA) are offering a multi-term wage agreement in Sector 5 with a 5% salary increase for year one, 5% for year two and 4% for year three.

Köstens says #MISA’s members cannot accept 5% as this would not be in the best interest of the Union’s members. The inflation rate is 7.6%.

The RMI did not indicate that the current offer is the final offer. #MISA did not declare a dispute and remains positive that the parties can reach an agreement.

The rest of #MISA’s demands are:

• Measures on the elimination of violence and harassment to ensure the provision of safe workplaces for all;
• Amendments to the wording of the short-time clause, because the current wording is creating challenges in the industry;
• A review of the calculation of retrenchment pay, accrued leave pay and the suspension of commission earners. The current calculations excluding commission and incentives.

#MISA will continue to keep its members abreast of developments.

#MISACARES #MISAONTHEMOVE