RMI on progress with MIBCO wage- and substantive negotiations

The Retail Motor Industry Organisation (RMI), which is the largest party to the Motor Industry Bargaining Council (MIBCO), comprising more than 20 000 employers and 300 000 employees across numerous divergent sub-sectors, has been engaged in wage-and substantive negotiations with the other parties to MIBCO since March 2022.

Jacques Viljoen, chief negotiator for the RMI, says the diversity of the profile makes for complex negotiations to ensure that concluded collective agreements not only provide for fair and equitable wage increases, but also the sustainability of businesses trading in the industry.

This has resulted in time-consuming engagements between the trade unions and the employer bodies. Viljoen says the negotiation process this year is not dissimilar to previous years.

Viljoen says it is however concerning that NUMSA, which according to audited membership numbers represents only 18% of the sector with 57 000 members, is threatening industrial action which could pose a serious challenge for the recovery of the sector following the recent national state of disaster and the riots of 2021.

The RMI places a high premium on labour stability and industry peace and is taking these negotiations extremely seriously. “Until recently, much time was spent on the identification of core non-wage demands from the trade unions which has been dealt with. On 3 August 2022, the RMI tabled a wage offer to NUMSA which is aligned to inflation forecasts for the intended three-year period of the collective agreement. Progress is anticipated to increase over the next few weeks in the hope that a new wage- and substantive agreement is published by the Department of Employment and Labour as soon as possible after 31 August 2022, when all the current collective agreements expire,” concludes Viljoen.