Dear CEO MIBCO Members
The Motor Industry Bargaining Council has issued a circular indicating how the council will be operating under level 3 of lockdown. Herein is a summary of information that will affect employers and employees of the Motor Industry under the said alert level:
IN TERMS OF NATIONAL STATE OF DISASTER REGULATIONS:
- The entire Motor Industry is allowed to operate as permitted services;
- All of the COVID-19 workplace regulations will apply (unchanged from Level-4).
- The National Disaster Benefits and Temporary employer/employee relief programmes through the UIF still exist, and relief can be sought.
IN TERMS OF MIBCO RETURNS:
The council stated that there would be no deductions for MIBCO levies, however, if the wage value equates to less than 23 hours of work per week, then the full MIBCO levy amounts will be required if the wage value equates to 23 hours of work or more per week. Please note that the equivalent applies to monthly earners.
Sick, Accident and Maternity Fund (SAMF)
The council further stated that there would be a payment holiday on SAMF contributions as of 27 April 2020 to 26 July 2020 (for 13 weeks). MIBCO forecasts for SAMF contributions will not be raised, and employers will not be required to create or request breaks. Beneficiaries will continue to be entitled and receive benefits provided for in terms of the Rules of the Fund. The SAMF contributions will be forecasted as normal from Monday 27 July 2020.
The Autoworkers (AWPF) and Motor Industry (MIPF) Provident Funds
- There will be no provident fund deductions if the earning equates to less than 23 hours of work per week and full provident fund deductions will be required if the earnings equate to 23 hours of work or more per week.
- Where employee earnings equate to 23 hours of work or more per week, but an employer can prove that the business is under financial distress due to the COVID-19 impact, such employers can apply to the Motor Industry Retirement Funds (MIRF) for a contribution relief in one of two ways: i). An employer can apply for an exemption of up to six (6) months to not pay provident fund contributions; or ii). An employer can apply for a payment arrangement exemption of up to six (6) months, to pay an agreed provident fund contribution amount.
Motor Industry Staff Association (MISA) Union Fees
There will be no union fee deductions if the wage value equates to less than 24 hours of work per week and the full union fee is deductible should the wage value equate to 24 hours of work or more per week. Please note that the equivalent applies to monthly earners.
National Union of Metal Workers of South Africa (NUMSA) Union Fees
NUMSA union fee deductions will be according to the membership agreement, i.e. a percentage of income regardless of hours worked.
Additional Holiday Pay (AHP)
In the absence of a published MIBCO Main Agreement, no AHP is payable through the MIBCO return. Employers are advised to create breaks on the MIBCO Online Returns System or to contact MIBCO to create the AHP breaks.
The council has further stated that any employer who wishes to apply for an exemption regarding any one or more of the binding provisions of the prevailing MIBCO Administrative Agreement and such application must be directed to any of the Regional Secretaries as indicated below:
Eastern Cape Region: Leslie.Palmer@mibco.org.za
Western Cape Region: Gerrie.Basson@mibco.org.za
Free State/ Northern Cape Region: Grant.Theys@mibco.org.za
Highveld Region: Highveldregion@mibco.org.za
Northern Region: Johan.Naude@mibco.org.za
Please click here for the full detailed circular dated 03 June 2020.
Queries / CEO Membership: For any queries of existing members, or enquiries on how to become a CEO member, please contact our head office at (012) 880 0294 or e-mail us at email@example.com
CEO Collective Bargaining Team