Western Cape Business News

Send  Share  RSS  Twitter  10 Aug 2010

BUILDING: Building Sector Agreement


Recent Western Cape Business News

A critical Collective Agreement aimed at ensuring stability in the Cape building industry over the next three years, has been secured by key associations and unions. The Agreement, which governs the industry as a whole, is effective as from 1 November 2010, when the present agreement expires, ensuring a seamless transition.

The Agreement covers the critical elements of minimum wage and benefits, clauses that have wide ranging effects on the industry as a whole. Annual bonuses have increased from 12 to 15 days per annum, whilst the minimum prescribed wages, benefits and levies will increase by 8% as a cost to company compared to 9% increase for 2010.

Whilst the agreement governs minimum wages pertaining to workers in both the Cape Peninsula and Boland Areas, geographic zones are not equal. “Historically there has been a significant disparity in the various areas within the Peninsula, Boland and Malmesbury,” said Henry Strydom, Secretary for Building Industry Bargaining Council (Cape of Good Hope). Wages vary depending on the geographic location of the site, but parity has been addressed and is being accelerated. “We are pleased that the new agreement has taken a positive step in hastening equality within the areas,” added Strydom. These areas include Paarl, Wellington, Somerset West, Strand, Stellenbosch, Darling and Malmesbury. The agreement also includes other conditions of employment such as contributions to the retirement, medical aid and sick payment funds, hours of work, overtime payment, public holidays and bonuses.

Employers and employees in the Peninsula and Boland areas are represented by the Master Builders’ and Allied Trades Association Western Cape; Boland Master Builders’ and Allied Trades Association; Building Workers’ Union; Building, Wood and Allied Workers’ Union of South Africa; National Union of Mineworkers and the Building Construction and Allied Workers’ Union.

Negotiations have once again been amicable and swift, which Strydom believes is due to both the union and employer parties being properly representative of the whole industry in the Bargaining Council’s area of jurisdiction.

The Department of Labour has issued the Bargaining Council with a Certificate of Representativeness, which, in turn, means that the Minister of Labour has no alternative but to extend the provisions of the Collective Agreement to all persons, employers and workers, engaged in the building industry. In cases where an industry does not have a Certificate of Representativeness, such industries have to rely on the Minister of Labour’s discretion as to whether the Collective Agreement is to be extended to so-called non-parties, which include employers and employees who are not members of the parties represented.


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