With negotiations relating to employment conditions in South Africa’s retail motor industry about to commence, the RMI is perfectly positioned to provide a powerful collective voice, says CEO Jakkie Olivier
It is a widely known and accepted fact that the RMI is an employers’ organisation that, as part of its core strategic objectives, is responsible for negotiations with trade unions in pursuit of changes in wages and other conditions of employment.
The RMI plays a leading role in protecting the best interests of business during these negotiations, which becomes even more pivotal during tough economic circumstances. June/July 2016 marks the beginning of another round of negotiations since the current three-year collective agreement, concluded during 2013, comes to an end on August 31.
The RMI is by far the major employer representative and stakeholder at the Motor Industry Bargaining Council (MIBCO) that facilitates collective bargaining in the industry. That’s why the RMI is perfectly positioned to provide a powerful collective voice that gives members considerable clout in negotiating better trading conditions.
Centralised collective bargaining in an industry as diverse and complex as the retail motor industry, with in excess of 19 000 registered businesses employing more than 300 000 employees, places a huge responsibility on the leadership of both employers and trade unions.
The negotiating parties need to thrash out an agreement that not only protects the future viability of the industry, but also reflects the unique character of the industry and the South African economy in the global environment.
The negotiators should be well acquainted with the challenges facing the local economy and the retail motor industry. Currently, the economy remains under pressure with high unemployment, high interest rates and rapidly-shrinking consumer disposable income.
The impact of the prevailing tough economic climate is clearly visible in the steep decline in year-on-year vehicle sales in South Africa and the increasing tendency of businesses initiating retrenchment programmes.
Against this background, the RMI is concerned about the stance that the trade unions have adopted in preparation for the upcoming negotiations in the MIBCO arena.
Our concerns are due to the demands we have received from the trade unions. As the biggest trade union within the MIBCO ranks, NUMSA alone has submitted 15 demands, most of which would have a profound financial impact on employers. Among the demands, the following would best explain why we are concerned:
- A one-year agreement (as opposed to the current three-year agreements);
- An industry minimum wage of R30 per hour;
- An increase of 20% on actual rates of pay across the board for all employees earning above R30 per hour;
- An 80% employer subsidy towards medical aid contributions; and
- A R5 000 monthly housing allowance.
From the above, it becomes clear that such demands would not be sustainable and would certainly have a huge negative impact on the economy, job creation and retention, economic growth and, last but not least, for businesses to keep their doors open in the future.
While unrealistic demands create expectation among the workforce, the hard truth is that they are not possible and in fact, quite irresponsible. The RMI would like to assure the industry and its members that the forthcoming negotiations will be approached with a sense of great responsibility and keen interest of what is good for the economy and the business world at large – all of which will be aimed at creating a platform for a profitable and sustainable retail motor industry.