Metal and Engineering Industries Bargaining Council (MEIBC) Main Agreement Extended

Employment and Labour Minister Thulas Nxesi has on October 7 2022 gazetted the MEIBC Consolidated Main Agreement (‘the Agreement’) to non-parties, thereby making it legally binding on all employers and employees who fall within the steel industry.

In addition to the extension of the Agreement, the two agreements regulating administrative and dispute levies, as well as the Plastics Industry Main Agreement, have also been extended. All four agreements will come into effect from 17 October 2022.

In the case of a section 32 extension, where an agreement is negotiated and concluded by bargaining agents who represent and employ the majority of employees falling within the council’s coverage, the extension of a bargaining council agreement is seen as a reasonable and necessary mechanism of collective bargaining,” says Mr Trentini from SEIFSA.

Although the extension will be challenged by employer’s organisations, it will take considerable time before the matter is determined by the Labour Court.

The extension results in an enforcement of the Agreement, which includes the payment of Leave Enhancement Pay (LEP), which is calculated according to the formula that is specified in the Agreement. LEP can be deemed as a 13th cheque that must be payable if employees had worked for the employer for a completed year.

The extension also, amongst other rules, means that employees qualify for an additional week’s paid leave from his or her fourth and subsequent consecutive periods of annual leave and, by mutual arrangement between the employer and employee, the annual shutdown may be extended by an extra week or the employee may be paid out the monetary value of this extra week’s leave. Alternatively, and again by mutual agreement, the extra week’s leave may be accumulated until the employee qualifies for three such weeks’ paid leave.

The biggest challenge however will be to ensure that the minimum wages are paid according to the Industry.
Employers are encouraged to contact the MEIBC for information regarding the exemption process, to see if they qualify to be exempted from paying LEP and/or the minimum wage.

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