Why the fight against extension is so important

South African Engineers’ and Founders’ Association

The minimum, entry-level wage rate according to the settlement agreement that SEIFSA and the unions are trying to force on the industry is R46.53 per hour.  By comparison:

Industry

Minimum wage per hour

Motor

R16.72

Furniture

R20.00

Plastics

R28.07

Road Freight

R28.21

Civil Engineering

R34.45

Members of the Plastic Converters Association (PCA) are pushing for the settlement agreement to be extended to you.  They benefit from a minimum wage rate of less than R30/hr and they are in favour of the extension of an agreement that doesn’t even apply to them.

The terms and conditions of employment contained in the settlement agreement also add significantly to the cost of employment, for example:

Provision

Cost to company

Annual leave (15 days)

6.41%

Additional annual leave (5 days on fourth time of proceeding on leave)

2.14%

Leave enhancement pay

8.33%

Paid sick leave (30 days in a 3-year cycle – effectively 10 days per year)

4.27%

Sick Pay Fund contributions

0.09%

Family Responsibility Leave (3 days)

1.28%

Shop Stewards’ Leave (5 days)

2.14%

Public holidays

4.70%

Pension / provident fund contributions

7.30%

Compensation Commissioner

4.00%

UIF

1.00%

Skills Development Levy

1.00%

Total additional cost to company

42.66%

This means that the entry level minimum wage that 10% of the employers in the industry are fighting to impose on you is R66.37 or higher.

If you haven’t already submitted your views and comments on the impact of the extension of this settlement agreement, please do so.  You may do so anonymously if you wish and we will attach it to our submission to the Minister. 

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