A presentation by Ian Macun presented during the annual Road Freight Association Convention in Limpopo, South Africa.

1. The Future of Collective Bargaining
RFA Convention 2016

2. Introduction
i. Introduction
ii. Current realities
- International
- South African
iii. Future scenarios
1 June 2016

3. Policy framework for centralised bargaining
• Commitment to sector level bargaining
• Coherent, sector level bargaining arrangements with NEDLAC
playing a role in demarcating sectors and industries
• Bargaining councils to set minimum conditions with possibility
of supplementary bargaining at plant level
• Extension of collective agreements with provision for
exemption
1 June 2016

4. Policy framework cont.
• The interests of small business to be represented in
bargaining councils
• Bargaining councils to be able to straddle the public and
private sectors
1 June 2016

5. Number of BC’s and coverage, 1992 to 2014
5
Year No. of Bargaining
Councils
No. of employees covered by BC
agreements
1992 87 735 533
1998 76 632 992
2004 48 2 358 012
2010 47 2 520 718
2014 44 2 505 074

6. Coverage of Bargaining Councils, 2015
• Private sector bargaining councils - 1 405 409
• Public sector bargaining councils - 1 184 318
• Total coverage (employees) - 2 589 727
6

7. Economic sector and bargaining council coverage
7
Sector Employment Bargaining Councils BC Coverage
Agriculture 869 000 2 2085 (0.2%)
Mining 446 000
Manufacturing 1 756 000 17 647 431 (36%)
Utilities 136 000 1 6818 (5%)
Construction 1 401 000 7 73 062 (5.2)
Trade 3 119 000 184 735 (5.9%)
Transport 922 000 3 205 509 (22%)
Finance 2 164 000
Community & social
services
3 548 000 6 1 442 967 (40.6%)
Total: 14 361 000 36 2 562 607 (17.8%)

8. Bargaining Councils & collective agreements
1. Extended collective agreements by BC’s = 23
2. Councils without extended collective agreements = 12
3. Collective agreements extended on basis of Ministerial
discretion (sufficiently representative & supporting collective
bargaining) in past 4 years = 5 (metal, motor, road
passenger, clothing, road freight, building (Cape))
8

9. Representativeness of councils (% coverage)
9
Bargaining Council TU Employer
Building SE Cape 28 59.7
Building Cape of Good Hope 42 56
Building East London 33.9 57.5
MEIBC 36.9 43.2
Laundry 27.3 28.5
Road Freight 45 43
Canvas Goods 26
Wood & Paper 41 69
MIBCO 36 61

10. 10
Registered Trade Unions and union membership
Year Numbers Collective Membership
1990 209 2,810 712
1996 334 3,016 933
2000 464 * 3,552 113
2005 341 3,134 865
2007 261 3,245 121
2008 216 3,180 304
2009 205 3,294 913
2010 200 3,057 772
2011 194 3 192 530
2012 191 3 028 400
2013 188 3 250 100
2014 186 3 556 365
2015 186 3 556 914
*Highest no of TU

11. BC Settlements in 2015
11
Bargaining Council Settlement (%) Duration
Building (Bloemfontein) 9% 12 months
Furniture (Gauteng) 6.4% (10 for less skilled) 4 months
Furniture (KZN) 8% 9 months
Leather 7.5% 8 months
Meat Trade (Gauteng) 8% 2 years
Restaurant (Jhb) 6% (8 for less skilled) 2.5 years
SARPBAC 8.8% 18 months
Textile 7.5% 4 years

12. Bargaining Council minimum wages
Lowest minima:
Hairdressing (unskilled), Free State R6.11ph R275pw R1192pm
Highest:
New Tyre (skilled) R73.71ph R3243pw R12974pm
Average minimum monthly wage: R3141.85
1 June 2016
12

13. Impact of different NMW levels on collective
agreements
1 June 2016
13
Wage level Collective Agreements
affected
Bargaining Councils
R1258 2 Textile (carpets), Hairdressing
(FS & Kim.)
R1886 3 Furniture, Hairdressing, Textile
R3189 19 Restaurant, Fishing Meat,
Building, Laundry, Contract
Cleaning, Furniture,
Hairdressing, Textile, Clothing
R4303 21 Restaurant, Fishing Meat,
Building, Laundry, Contract
Cleaning, Furniture,
Hairdressing, Textile, Motor,
Electrical, Clothing

14. Thank You…
141 June 2016