NATIONAL BARGAINING COUNCIL FOR THE CLOTHING.ppt

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NATIONAL BARGAINING COUNCIL FOR THE CLOTHING.ppt Powered By Docstoc
					  NATIONAL BARGAINING COUNCIL
             FOR THE
CLOTHING MANUFACTURING INDUSTRY




    WAGE CLERK’S COURSE
                COURSE LAYOUT:
                            Designated Agent:

1.   Experience

2.   Differential Rates [Clause 6]

3.   Incremental Dates [Clause 4(4)]

4.   Calculation of wage and date increments

5.   “Across The Board Provision”
     [Clause 4(11) - the Clothing ,Knitting and Country Areas Agreements]

6.   Aggregation of overtime provisions [Clause 10(1)(d)]

7.   Shift provisions
                             Designated Agent:

8.    Engagements, Terminations, Absence from Work and Transfer in Occupation
      [Clause 16]

9.    Sick leave provisions for party and non-party members [Clause 26]

10.   Annual leave and paid holidays

11.   Annual Bonus [Clause 4 (9)]

12.   Maternity leave provisions [Clause 30]
                                  Designated Agent:

13.    Factory inspections – when an agent visits a factory:
      1. Powers of a designated agent of a Bargaining Council in terms of Section 33(1)(A)
          and as set out in Schedule 10 of The Labour Relations Act, Act 66 of 1995, as
          amended

      2.   Purpose of the visit

      3.   What to have ready
                   James Mentor – Financial Manager:

14.    Financial and administrative methodologies of the Chamber:
      1. Background

      2.   Methodology employed in invoicing cycle

      3.   Prescribed forms

      4.   Important administrative dates

      5.   Role Of Client Information Officer

      6.   Housing accounts

      7.   Other

      8.   Questions
             Charlotte Coon – Benefit Admin. Manager:

15.    Provident Fund:
      1. Benefits administered by the fund

      2.   Maternity benefits

      3.   Management of disability cases

      4.   Housing / Cession loans
                Sophy van der Berg – Clinical Director:

16.    Health Care Fund:
      1. Definitions

      2.   Membership and level of contributions

      3.   Health care fund benefits

      4.   General rules

      5.   Exclusions

      6.   Exemption applications
        Joseph Williams – Labour Affairs Manager:

17.    Compliance Certificates:
      1. Requirements to qualify for this certificate
      2. Advantages

18.    Exemption applications as per Clause 19 of the Main Agreement requirements:
      1. Party exemptions and Non-party exemptions
      2. Individual wage exemptions
      3. All other exemptions except social fund exemptions
      4. Exemptions application from social fund
      5. Exemptions Committee – Nuts and bolts of the application
      6. Appeal procedure to the Independent Exemptions Board

19.    Enforcement procedure of the Council in terms of administrative and financial
       requirements:
      1. An overview of the Council’s enforcement procedure will be given
      2. Skills placement centre
Designated Agent
                                      1. Experience:
1. Overview:
    – For the purpose of Clothing and Garment knitting sectors:
        • All experience counts, in all areas.
        • Experience in the Millinery Industry counts on its own.

2. Experience gained in the Clothing and/or Knitting sectors are as follows:
    – Experience gained in the Magisterial districts defined in the Main and – Knitting
      Agreements of the Western Cape Region, Country Areas Agreement – covering the
      magisterial districts of George and Worcester only and experience gained in magisterial
      districts as defined in the Non Metro agreement.
    – Experience gained in magisterial district areas defined as per the other regional councils.
    – Service record card and or certificate of service issued by regional council and or
      documentary proof of employment provided by the employer.
3. Authenticity of documentary proof of previous experience:
    – Onus on firm to determine that.
    – To verify with previous employer or with local Bargaining council or other Regional
      Bargaining Councils.

4. NOTE:
    – Experience contravention:
       • It is a contravention of the Council’s Main - Knitting and Country Areas Agreements
         to employ employees without service record cards if they have previously worked in
         the formal clothing or knitting industry.
       • See clause 16(a) and clause 16(c)
5. Procedure to be followed before an employee can be employed:
    1. Question employee if worked in the formal Clothing or Knitting industry:
        • Metro or Non Metro areas or where applicable clerical experience gained outside the
          jurisdiction of the Bargaining Council (i.e. irrespective of the industry the experience
          was gained).

     2. If the employee answers in the affirmative:
          • Request to produce the service record card.
          • If card cannot be produced by the employee (i.e if the card was lost or handed in at
             the provident fund dept to apply for benefits):
               – The employee is not allowed to be employed as yet and employee should
                  personally collect a copy of the service record card and a certificate of service at
                  the Bargaining Council.

     3. If the employee has worked in the jurisdiction of other regional Bargaining
        Councils:
          • Certificate of service or documentary proof of experience should be produced and
             submitted under cover of a completed BC2 form and completed reverse side of the
             BC2 form to credit the employees previous experience.
Procedure to be followed before an employee can be employed continued:
    4. If the employee has never worked in the industry before:
         • The employee should make a declaration as provided on the reverse side of the BC2
            form to the effect that the employee has never worked in the clothing industry
            before.

    5. In the event of the Bargaining Council detecting, at the time of registration of the
       employee, that the employee has gained previous experience:
         • It would normally coincide with the need to adjust the employees wage.
         • The firm is then advised to the effect that the employee has made a false declaration
           and will confirm the experience and advise the adjusted wage due and issue a new
           service record card reflecting the updated experience.
         • It is important to note that if the firm failed to require the employee to sign the
           declaration on the reverse side of the BC2 form, the firm will be liable for the wage
           underpayment from date of engagement of the employee and not from date detected
           by the Bargaining Council.
6. NOTE:
    – Experience on the service record card may not always reflect employees full
      experience:
        • Employee may work as a casual, the service record card not handed in by the
          employee nor requested by employer.
        • Service record produced by employee but the full experience is not reflected on
          service record card.
        • Employer should contact the Bargaining Council and verify the employee’s
          experience and should request the issue of a certificate of service.
7. Experience to be taken into account:
    1. Clerks and Factory Clerks:
        • Irrespective of the trade in which such experience was gained.
        • Not to be taken into account for the purpose of experience in any other capacity.
        • Experience counts on its own.

    2. Clothing Machine Mechanics, Motor Vehicle Drivers, Boiler Attendants, Dispatch
       Packers, Travelers Drivers, Watchman or Care Takers, Labourers, General
       Workers, Supervisors, Quality Controllers, Instructors and Clothing Technicians:
        • Not to be taken into account for the purpose of experience in any other capacity.
        • Experience counts on its own.
8. Note:
    – Experience to be taken into account:
         • Provided that any employee, with less than one years experience, has not been re
           employed in the industry within a period of five years from date on which he was
           last employed in the industry, any experience gained shall be ignored for the purpose
           of calculating the minimum wage at which he may commence service.

         • Nothing in this part of the agreement shall operate to reduce the wage which was
           being paid immediately prior to or to which any employee was entitled at the date of
           commencement of this part of the agreement whilst such employee is employed by
           the same employer. The provisions of this sub clause shall also apply in the case of
           any employee whose services are terminated by such employer subsequent to the
           date of commencement of this part of the Agreement and who is re engaged by such
           employer.
Note continued:
    – Experience to be taken into account:
         • In instances when employees are not making the grade and are being transferred to a
           lower paid occupation or become disabled or due to ill health or for operational
           requirements, exemption could for. In the absence of a successful wage exemption, a
           wage claim will be instituted against such an employer.

         • In the second instance when an employee is terminated by an employer and
           subsequently re engaged by the same employer, the employer cannot reduce the
           wage on re engagement. The firm would, e.g. however have grounds for exemption
           in the event of the employee being offered another occupation in a lower paid
           occupation, being unable to re engage the employee in the same position e.g.
           supervisor being offered a position as a machinist.
                         2. Differential Rates [Clause 6]:
1. Overview:
    – If an employee is required to, in addition to his own work, perform the work for longer
      than an hour in the aggregate on any day for which:
        • A wage higher than that of his own class
        • A rising scale of wages terminating in a wage higher than that of his own class
      is prescribed, in sub clause (1), to pay such employee in respect of that day.

2. In the case of a wage higher than that of the employee’s own class (first point in
   overview):
    – not less than one–fifth of the higher weekly wage prescribed in sub clause (1)

3. In the case of a rising scale of wages terminating in a wage higher than that of an
   employee’s own class (second point in overview):
    – not less than one–fifth of the highest weekly wage prescribed in sub clause (1) for the
       highest wage.
4. Example:

An employee, earning R563.50pw as a passer, was required in addition to her
duties as passer to perform the duties of a supervisor on 11 Sep 2006 (for 55mins),
12 Sep 2006 (for 1hr 20mins) and 15 Sep 2006 (for 4hrs).

Wage due for period 11 September 2006 – 15 September 2006:
   – 11 Sep 2006: R 119.32 - 9hrs x hourly rate of a passer (R 563.50pw)
   – 12 Sep 2006: R 142.57 - 9hrs x hourly rate of a supervisor (R678.00pw)
   – 13 Sep 2006: R 119.32 - 9hrs x hourly rate of a passer (R 563.50pw)
   – 14 Sep 2006: R 119.32 - 9hrs x hourly rate of a passer (R 563.50pw)
   – 15 Sep 2006: R 103.69 - 6.5hrs x hourly rate of a supervisor (R 678.00pw)

   TOTAL: R 604.22 - 42.5hrs
                      3. Incremental Dates [Clause 4(4)]:
1. Overview:
    – All employees who qualify for an increase during the period 1 Jan - 31 Mar of the
      calendar year shall be granted such increases with effect from the pay week in which the
      15 Feb of such year falls. When an employee is not in employment during the said pay
      week he shall become entitled to the increase with effect from the date he is employed.

    – Likewise, and in the same manner, all increases become due during the periods 1 Apr -
      30 Jun, 1 Jul - 30 Sep and 1 Oct - 31 Dec of each calendar year shall be granted to
      employees with effect from the pay week in which 15 May, 15 Aug and 15 Nov fall
      within the respective periods.

    – In practical terms this means the following:
        • Increases due Jan – Mar: Due in pay week in which the 15th Feb falls
        • Increases due Apr – Jun: Due in pay week in which the 15th May falls
        • Increases due Jul – Sep: Due in pay week in which the 15th Aug falls
        • Increases due Oct – Dec: Due in pay week in which the 15th Nov falls
Overview continued:
    – In calculating whether an employee qualifies for an increment:
        • All periods of absence from work shall be counted, except any absence without pay
           for a continuous period in excess of four consecutive pay weeks and in respect
           whereof full particulars of the name of the employee and the period of absence have
           been advised to the Regional Chamber within 14 days of the employee resuming
           work

    – In this regard it is further noted that any period an employee is on maternity leave would
      not count for experience when calculating incremental dates.
        • Not to be taken into account for the purpose of experience in any other capacity.
        • Experience counts on its own.
               4. Calculation of Wage and Date Increments:
1. To simplify the process:
    – for the purpose of calculating the number of days in an incomplete month each calendar
       month will be regarded as having 30 days and not 28 days as normally the case for Feb or
       31 days as is the case for Mar.
    – A completed month will, e.g. run from 16 Feb 8to the preceding day in the following
       month (i.e.15 Mar 2008) and not till 16 Mar 2008!!!
    – Saturdays and Sundays:
         • non working days are taken into account when calculating experience.

•   In all the following examples, the week ends on a TUESDAY.

•   Period of experience: 16 Feb 2008 – 31 Mar 2008 = 1 month 15 days
4.2.1    Example 1:
         • Engagement date: 28 March 2008
         • Previous experience: 11 months 28 days (grade c)
         • Occupation: Line feeder




        28 Mar 2008                 R 527.00
        1 Sep 2008                  R 572.00
4.2.2    Example 2:
         • Engagement date: 30 July 2008
         • Previous experience: 1 year 4 months as a machinist
         • Occupation: Machinist




        30 Jul 2008                  R 532.50                    1st 6 months – 2nd year of
                                                                 experience
        13 Aug 2008 - W/E            R 594.00                    Qualified
        19 Aug 2008
        1 Sep 2008                   R 644.50
4.2.3    Example 3:
         • Engagement date: 20 February 2008
         • Previous experience: 2 years 6 months 10 days as a cleaner
         • Occupation: Machinist




        20 Feb 2008                  R 527.00                      1st 6 months from date of
                                                                   advancement to grade b
                                                                   employee
        13 Aug 2008 - W/E            R 532.50                      2nd 6 months from date of
        19 Aug 2008                                                advancement
        1 Sep 2008                   R 578.00
        11 Feb 2009 - W/E            R 644.50                      Qualified grade b rate
        17 Feb 2009
4.2.4    Example 4:
         • Engagement date: 5 April 2008
         • Previous experience:
              – 3 years 5 months as a cleaner (grade c)
              – 5 months 2 days as a machinist (grade b)
         • Occupation: Machinist




        5 Apr 2008                  R 527.00               1st 6 months of advancement
                                                           to grade b employee
        14 May 2008 - W/E           R 532.50               2nd 6 months of
        20 May 2008                                        advancement to grade b
                                                           employee
        1 Sep 2008                  R 578.00
        12 Nov 2008 - W/E           R 644.50               Qualified grade b employee
        18 Nov 2008
4.2.5    Example 5:
         • Engagement date: 6 June 2008
         • Previous experience: 1 year 11 months 15 days as a presser (grade a)
         • Occupation: Presser




        6 June 2008                  R 630.50                       1st 6 months 3rd year of
                                                                    experience
        1 Sep 2008                   R 684.00
        12 Nov 2008 - W/E            R 754.00                       Qualified
        18 Nov 2008
4.2.6    Example 6:
         • Engagement date: 1 July 2008
         • Previous experience: 1 year 25 days as a factory clerk
         • Occupation: Factory Clerk




        1 Jul 2008                   R 487.50                       2nd year of experience
        1 Sep 2008                   R 529.00
        13 May 2009 - W/E            R 572.00                       3rd year of experience - 1st 6
        19 May 2009                                                 months
        12 Aug 2009 - W/E            R 624.00                       Qualified wage
        18 Aug 2009
3. Note:
           Qualifying Periods
           All job categories with qualifying periods in excess of 24 months shall be reduced by 2
           months as from 1 September 2008
           In practice this means that, for example, In the instance of a cutter the 30 month
           qualifying period with six monthly increments is reduced to 28 months from 1
           September 2008, while the last increment period is reduced from 6 to 4 months.

           Factory Clerks and Clerks:
           • Learnership period: 2 years and 4 months
           • Increments on yearly basis during the first 2 years of learnership.
           • Final increment due 4 months thereafter.
           • Factory Clerks and Clerks experience counts on it own (see example hereafter).
5. Note:
    – 2001 Allowance:
         • Please be reminded that the 2001 allowance coinciding with 6 monthly increments of
           unqualified employees should equally be adjusted, e.g. allowance grade c employee:
             – 1st 6 months of experience = R4.45
             – 2nd 6 months of experience = R4.57
           5. “Across The Board Provision”[Clause 4(11)] -
        The Clothing, Knitting and Country Areas Agreements:
1. Overview:
    – This wage of an employee who is employed at a Clothing and or Garment Knitting
      establishment and who, immediately prior the date on which a new Agreement comes
      into operation, is in receipt of a wage higher than that prescribed for the class of work in
      which he is engaged, shall with effect from the date on which the new Agreement comes
      into operation, be increased by an amount equal to the difference between the wage
      prescribed in the previous agreement and the wage prescribed in the new agreement.
5.2.1    Example 1:
         • Engagement date: 15 August 2008
         • Previous experience: Nil
         • Occupation: Machinist




        15 Aug 2008               R 490.00
        1 Sep 2008                R 531.00   R 490.00 +R 41.00 (across
                                             the board increase)
        15 Feb 2009               R 550.00   1st yr, 2nd 6 months of
                                             experience
        12 Aug 2009 - W/E         R 578.00   2nd yr, 1st 6 months
        18 Aug 2009
        15 Feb 2010               R 644.50   Qualified wage
      6. Aggregation of Overtime Provisions [Clause 10(1)(d)]:
1. For the purpose of determining the number of hours, or part thereof, which an
   employee should be paid overtime rates:
    – The hours worked outside the employee’s normal working hours in terms of Clause 9 of
       this agreement may be reduced by the number of hours, or part thereof, in that pay week
       the employee was absent.

2. Provided that no reduction of overtime worked by an employee shall be made should
   the absence be as a result of the following:
    – Time not worked as a result of protected/industrial action.
    – Time not worked as a result of a public holiday as declared in terms of the Public
       Holidays Act.
    – Time not worked as a result of the employer having declared short time.
    – Time not worked as a result of the employee being on authorized shop steward time off.
    – Time not worked as a result of any authorized absenteeism
6.3.1    Example 1:
         • Pay week ending: 12 September 2006 (6 Sep 2006 – 12 Sep 2006)
         The employee worked the following normal and overtime hours in that pay week:

        6 Sep 2006                   9 hours – normal time         2 hours overtime
        7 Sep 2006                   9 hours – normal time         3 hours overtime
        8 Sep 2006                   6 hours 30 minutes – normal
                                     time
        11 Sep 2006                  9 hours – normal time         3 hours overtime
        12 Sep 2006                  9 hours – absent              sick leave

   Total overtime worked:     8 hours
   Hours absent:              9 hours

    – In terms of the aggregation provision the 8 hours overtime worked in the pay week the employee
      was absent should be reduced by the number of hours that the employee was absent (9 hours),
      meaning that the 8 hrs worked outside the normal hours should be paid at normal and not at
      overtime rates.
•   Therefore the payment due would be:

    Normal hours:         33 hours 30 minutes
    Sick leave:           9 hours
    Overtime:             Nil (8 hours overtime – 9 hours absent)
    Normal hours:         8 hours

    Total payment due:    50 hours 30 minutes (at normal time rate)
6.3.2    Example 2:
         • Pay week ending: 12 September 2006 (6 Sep 2006 – 12 Sep 2006)
         The employee worked the following normal and overtime hours in that pay week:




        6 Sep 2006                  8 hours 50 minutes – normal    2 hours overtime
                                    time                           10 minutes lost (late coming)
        7 Sep 2006                  9 hours – normal time
        8 Sep 2006                  6 hours 15 minutes – normal    15 minutes lost (late coming)
                                    time
        11 Sep 2006                 Illness of dependant child –   Certified at Health Centre
                                    absent                         facility
        12 Sep 2006                 9 hours – normal time
•   Therefore the payment due would be:

    Normal hours:         34 hours 45 minutes
    Overtime:             Nil
    Total absence:        45 minutes late coming + 6 hours 30 minutes sick leave
    Normal hours:         6 hours (overtime payment due at normal rate)
    Saturday:             1.25 (at normal rate)
                          2.75 (at 1.5 the hourly rate)
                          5 hours - after 12PM (double the hourly rate)
    Sunday:               17 hours (at normal rate)
4. Note:
    – Overtime:
         • Please note that in addition to overtime worked by an employee during a pay week
           (Mondays - Fridays) which may be reduced by the time an employee was absent
           during that pay week and which portion may be paid at ordinary rates equally applies
           i.r.o any time worked on a Saturday and/or a Sunday.
         • Please note that the hours overtime worked or hours worked on a Saturday/Sunday,
           or parts thereof, worked in a pay week can only be reduced by the number of hours
           of absence in that same pay week.
                                  7. Shift Provisions:


1. Overview:
    – In terms of Clause(1)(b) of the Clothing Agreement, clothing establishments are required
      to give the Council at least 15 working days notice of the intention to work shifts, and is
      further required to consult with the trade union in this regard. This requirement is not
      applicable to knitting establishments.

    – The other requirements of shift work and the overtime provisions for clothing and
      knitting establishments are identical and are as follows:
       • A shift worker’s ordinary hours of work = 42.5 hours per week.
       • This may be worked on any day from Sunday to Saturday [Clause 9(1)(b)].
       • Sundays and Saturdays could be a normal work day for a normal shift worker,
           provided that where two shifts are employed daily.
       • Limited to 9 hours on any day and where 3 shifts are worked on any day 8 hours per
           day.

    – The shift operation at knitting plants are normally run 24 hours a day over 5 days varying
      between 2 x 12 hour shifts or 3 x 8 hour shifts over a 24 hour period.
Note:
 – Shift provisions:
      • Shift allowance of 12.5% is payable in respect of shift hours worked, i.e. 12.5% on
        total earnings (normal time and overtime).

      • Please note that employees normally alternate between day and night shifts and the
        shift allowance is payable i.r.o day and night shifts [Clause 3(9)].
2. Example 1:
    – Shift: 2 x 12 hour shifts per day x 5 days per week
        The employee worked the following shifts:




       Monday - Friday               5 days
       7:00 – 19:00                  11 hours 30 minutes per day     (12 hours – 30 minute meal
                                     57 hours 30 minutes per week    interval)



   Normal time:       42 hours 30 minutes
   Overtime:          15 hours per week (3 hours per day x 5 days)
3. Note:
    – Shift provisions:
         • Please note that in the instance where 3 shifts are worked over 24 hours each shift
           can only be 8 hours but employees are required to be paid the full weekly wage
           based on 42.5 hours in terms of Clause 4(3) basis of contract.

         • You are reminded that an employer may make mutual arrangements with his normal
           shift workers to work 42.5 hours on night shift, excluding meal intervals, in any
           week Monday to Thursday (four day week).
                                      See Clause 9(1)(b)

         • Although 12 hour shifts over 5 days is a common practice in the knitting division,
           exemption is required as the 3 hours daily and 10 hour weekly limitation is equally
           applicable as in the case of day workers.

         • Exemption also need to be sought for and additional shift.
4. Calculation of overtime:

     Monday – Friday    7:00 – 19:00   12 hour shift less 30   11 hours 30 minutes x 5   57 hours 30 minutes
                                       minute meal interval    days
     Saturday           7:00 – 19:00   12 hour shift less 30   11 hours 30 minutes       11 hours 30 minutes
                                       minute meal interval
     Sunday             7:00 – 19:00   12 hour shift less 30   11 hours 30 minutes       11 hours 30 minutes
                                       minute meal interval


Normal hours:          42.5
Overtime hours:        57.5 (26 hours 30 minutes at 1.5 the hourly rate)
Saturday:              42.5 (15 hours + 11.5)
                       11 hours 30 minutes (work on Saturday)
                       Entire Saturday at 1.5 the hourly rate
Sunday:                11 hours 30 minutes
                       due 11hrs 30min at double the ordinary rate = 23 hours pay
                       day of rest in terms of Clause10(5)
                       payment due in terms of Clause11(7) read with Clause 11(3)
5. Twilight shift provisions – Clause 9(6)

5.1      The definition of a twilight worker (Clause 3(f)) :
         • Twilight shift worker means an employee, other than a normal shift worker,
           employed any time between the hours 16:30 and 23:00 on any day from Monday -
           Friday with the specific intent of being employed on twilight shift and who is not
           ordinarily employed by the employer who has introduced the twilight shift or any
           other employer.
         • Twilight shift means a shift, other than a normal shift, introduced by an employer
           between the hours 16:30 and 23:00 on any day from Monday - Friday.
5.2   Ordinary hours of work [Clause 9(i)]:
      • Any time between 16:30 and 23:00 on any day from Monday - Friday.

5.3   Twilight Shift [Clause 9(6)]:
      • General Provisions:
          – Unemployed people may be recruited for working this shift.
          – Notwithstanding the provision of sub clause 1(a) above, supervisory and
            management staff from the existing staff complement of the employers business
            may be employed on a twilight shift.
          – A twilight shift worker may only operate between the hours 16:30 to 23:30
            daily from Monday – Friday.
5.4   Employment conditions:
      • All provisions contained in this part of the Agreement, unless specifically excluded,
        shall be applicable to employees on a twilight shift.
      • The remuneration payable to a twilight worker shall accrue at an hourly rate.
      • A twilight worker shall not be entitled to payment of a shift allowance.

5.5   Transport arrangements:
      • The cost of transport from the place of work to the home of employees will be
        funded by the employer and/or
      • The employer will be responsible for the arrangements and expenses of transport
        from the work place to the homes of the employees at the conclusion of a twilight
        shift, provided that where an employer and employee agree that the employee shall
        make the practical arrangements for transport home, this shall be permissible
        provided the employer shall still be responsible for the costs of such transport.

5.6   Note:
      • Twilight worker:
          – A twilight worker may not be required to work on a Saturday or on a Sunday.
          – See Clause 11(1)(e) and 11(10)(f)
5.7   Productivity Incentive
      • Employers shall pay an amount of 0.5% of the weekly wage into a dedicated
        productivity incentive bank account. This must be done on a weekly basis or on the
        date that wages is normally paid, if it is paid at a time other than weekly.
      • The money in this productivity incentive bank account is ring-fenced for the
        introduction of plant level productivity incentive schemes only
      • This productivity incentive scheme bank account shall be opened and authorized on
        the basis of co-signatures as follows:
           – A person nominated by management plus a SACTWU shop steward (where
              there are no shop stewards at a workplace, a representative nominated by the
              workers shall be the second signatory)
      • With effect from 1 September 2008, each workplace shall have a period of 2 months
        within which they must reach agreement between management and the union about
        how the productivity incentive scheme at that work place will function and how the
        incentives are to be paid.
      • If there is no productivity incentive scheme agreement reached by 1 November 2008,
        all the monies in the productivity bank account must be paid out to the workers as
        part of their wages, until an agreement on an appropriate productivity incentive
        scheme is reached.
• The productivity incentive scheme agreements reached must ensure that all workers
  are covered by the terms of this agreement, not just some, shall benefit from the
  incentive scheme.
• All productivity scheme agreements reached must be registered with the National
  Bargaining Council for the Clothing Manufacturing Industry, within 1 month after
  agreement has been reached.
• Productivity incentive scheme agreements shall not contain any provisions which
  have the effect of downward variation of any term or condition of employment
• The productivity incentive scheme envisaged in this agreement shall be in addition to
  and not in place of any existing productivity incentive scheme which may currently
  exist.
• If the workplace closes or is liquidated, all the money left in the productivity account
  must be paid out to the employees at that workplace and who are covered by the
  terms of this agreement
Designated Agent
8. Engagements, Terminations, Absence from Work and Transfer
                  In Occupation [Clause 16]:
1. Engagement procedure:
    – No employee may be employed without a Service Record Card if previously employed in
      the Industry refer Clause 16(a) and 16(c).
    – Employee must be sent to the Council for a duplicate Service Record Card.
    – Interview employee immediately and obtain all relevant details such as full name, home
      address and dependants.
        • Complete application / Details of Dependants incase of new entrant and existing
           members (BC 2).
        • Complete dependant advice (BC2).
    – Determine job to be performed by employee (ask Manager or Supervisor).
    – Prepare clock cards.
    – Examine Service Record Cards, check all entries, observe transfers in occupation, e.g.
      Cleaner to Machinist, assess experience.
Engagement procedure continued:
    – Calculate starting wage due according to occupation and experience, and the deductions
      to be made from wages.
    – Determine date of next increment and wage due.
    – Enter details onto Clause 17 – Factory Record Card and record date of next increment.
    – Complete first four columns of Service Record Card and file with Clause 17 – Factory
      Record Card.
    – Complete engagement return of Council (BC 3).(DO NOT FORGET TO WRITE IN
      THE W.E DATE)
    – Enter details of employee into wage records.
2. Whilst in employment:
   – Deduct levies and contributions week by week.
   – Once per month prepare levy return and Provident Fund Schedule and post to
     the Council with the cheque.
       • Prepare new nominee form (BC 2) and dependants form (BC 2) when
          employee’s are married, divorced or have babies.
       • Where there are no dependants, it should be indicated on the dependant
          form.
       • NB ALL INVOICES SENT TO THE COUNCIL MUST BE SIGNED
          BY THE COMPANY
       • DEPENDANT:
       • Means, for the Clothing Industry Healthcare Fund, any of the following
          persons
            – The declared spouse of the contributor living at the same address
            – The unmarried children under the age of 18 of the contributor, including the
              natural offspring, step-children or adopted children
            – The unmarried children of the contributor, including the natural offspring, step-
              children or adopted children, over the age of 18 but under 25, who are
              physically or mentally disabled
            – Whose admittance to membership of the Fund is at the sole discretion of the
              HealthCare Fund Management Committee.
3. When terminating:
   – Calculate the wages due.
   – Calculate pro-rata leave pay due/Bonus and all other monies due.
   – Advise the Council of Termination on the next BC 3.

4. Fixed term employment:
    – A “fixed term contract” only identifies the period of employment. However, all
        other Agreement conditions apply i.e. notice/leave
    – The Union should be consulted before such contracts are used for reasons other
      than Maternity Leave.
    – The Rolling Over” or the extending of fixed-term contracts continually, are not
      permitted.

5. Fixed term contract / Maternity leave:
    – When and employee is on Maternity Leave, the Agreement makes provision so that the
       employer may employ temporary employment on a fixed-term contract basis.
6. Contract Employees (NEW PROVISION):

  These employees with 12 months or more employment with the same employers shall be
  converted into permanent employees.

  All contract employees shall be entitled to receive a pro-rata share of all statutory payments
  due to permanent employees.
  All contract employees shall be who are in employee at the end of November each year shall
  be entitled to full payment for all Public Holidays which fall during the annual shut down
  period.
  Employees who completed a learnership shall not be placed on a further contract period after
  the completion of such learnership, but shall be employed as a permanent fulltime employee.
  Where there are more beneficial arrangements (other than those set out in sub-clause above)
  governing the employment of contract workers, such provisions shall remain effective
7. Casual clause:
    – “casual employee” means an employee who is employed by an employer on not more
      than three days in any week and who is engaged in one or more of the following duties or
      capacities:
        • general gardening work
        • loading or unloading
        • cleaning bush
        • washing vehicles or windows
    9. Sick Leave Provisions for Party and Non-party Members
                           [Clause 26]:
1. Overview:
    – An employer shall grant an employee who is absent from work through incapacity:
        • in the case of an employee who regularly works not more than five days a week, not
           less than 10 working days; or
        • in the case of any other employee, not less than 12 working days;
    – sick leave in the aggregate on full pay during each period of 12 consecutive months
      commencing 01st July 1997 and on each July 1st thereafter, for which the employee is
      employed by him (hereinafter referred to as the ‘sick leave cycle’) this applies to Party
      establishments only (CCA).
    – To Non Parties full sick leave provisions as per the BCEA. One day for every 5 weeks
      worked in the 1st 6 months (new employee) there after the balance of the unused in the 1st
      6 months plus 25 if 30 days where applicable.
    – N.B CCA (CAPE CLOTHING ASSOCIATION) COMPANIES ONLY: An
      employee engaged after the 1st July shall work 5 weeks to qualify for 1 day in the first 6
      months. However, if they were in employment on the 30th June they would qualify for 10
      days.
                    10. Annual Leave and Paid Holidays:

1. Overview:
    – In terms of Clause 15(1) of the Council’s collective Agreements employees in the
        Industry to the Agreements apply must be granted at least 3 consecutive weeks and
        one working day of Annual Leave between 15th December 2006 and 14th January
        2007.
        • 15 days full pay
        • full day pay for Christmas Day, Day of Goodwill and New Years Day
    – Day of Reconciliation falls on a Saturday and in terms of Clause 15(2)(e) an employee
      shall be paid 5½ hours wage.
    – Where an employee begins employment during the year, leave is calculated at 1 day for
      each completed month of the service plus the Public Holidays.

2. NOTE:
    – Deductions from leave:
       • 3 weeks deductions is made from the leave pay of the employee during           the
         December period
                     11. Annual Bonus Clause 4 (9):

Each employee shall be paid an annual bonus on the day of his employer (s) annual closure
in December each year, equivalent to 2.0% of his basic prescribed wage (excluding overtime
earnings and production bonuses) calculated from 1 January to 31 December.
A pro-rata share thereof shall be paid to an employee who leaves employment before the 31st
December.

35 weeks x R594.00 = R20 790.00
17 weeks x R600.00 = R11 296.50 (wage as at 1 Sept 2008)
x 2% = R641.73       R32 086.50
             12. Maternity Leave Provisions [Clause 30]:

1.   Requirements to qualify for maternity leave:
     1. Provided in Clause 30:
        • Must have been employed by the same employer for 1 year.
        • Where and employer or employee has not been in the industry for 1 year
           the BCEA applies and there services are not terminated and absentee
           period is submitted to the Council.

     2. Before Confinement:
        • Employee must have APPLIED to make use of the Maternity Leave
            facility; on a form identical to ANNEXURE “N” at least ONE MONTH
            before the commencement of her confinement
        • The wage clerk has the responsibility to ensure that the employee is
            GIVEN THE FORM IN TIME to permit her to decide whether she
            wishes to make use of the facility or not. Failure, or refusing to give her
            the form, could result in dispute.
        • THE CHOICE IS THE EMPLOYEE’S AND NOT THE EMPLOYERS.
        • Assist her in completing the form and INFORM MANAGEMENT so that
            arrangements can be made to obtain a temporary replacement, or to do
            restructuring.
Requirements to qualify for maternity leave continued:
   3.   Whilst in confinement:
        • Employer pays BOTH his and the employee’s PROVIDENT FUND and HEALTH
          CARE FUND contributions.
        • NOTE: Employer DOES NOT pay the dependants portion of the HEALTH CARE
        • FUND as this in future will be paid by the employee form her maternity leave.
        • Employee has the right to tenure. (She is entitled to her job, or similar job when to
          returns).
        • Employee must advise the employer AT LEAST FOUR weeks before she intends to
          return.
        • The Employee does this by sending the Annexure “O” BY REGISTERED MAIL or
          by bringing in the form to her employer and OBTAINING A WRITTEN RECEIPT.
          If she has lost the form she may send a written letter instead.
        • If, she returns later than 183 days (6months) she is re-engaged in the usual manner.
        • In Terms of the LRA 1995 and employer may not refuse to allow an employee to
          resume work after, she took maternity leave in terms of any law, collective
          agreeement or contract of employment.
2. NOTE:
    – Expecting mothers:
       • Expecting mothers’ can only work up to four weeks before the expected date and
         eight weeks after the date of the child’s birth.
       • If, before the employee is due to return, she informs the employer that she will not be
         returning, the Council must be informed of the termination and contribution to the
         Health Care and Provident Fund must cease.

3. NOTE:
    – Calculating the latest possible maternity leave date:
       • “six months maternity” means the time off not exceeding 6 months (183 days).
       • “Date returned to work: can be less but NOT be more than 6 months and 1 day after.
       • “date last worked”
3.1       Example:
Date Last worked: 13 March 1994 (Enter BC3)
Maternity from:   14 March 1994
Maternity to:     13 September 1994
Date return:      14 September 1994 (BC 3)

3.2.    NOTE:
        • Maternity to date:
           – When an employee’s MATERNITY TO date falls in a leave period, public
             holiday or weekend the Council’s computer will accept the working day
             thereafter as the date she returned to work.
Designated Agent
  13.1. Powers of a Designated Agent of a Bargaining Council in terms of Section
   33(1)(A) and as set out in Schedule 10 of The Labour Relations Act, Act 66 of
                                 1995, as amended:
1. Section 33(1)(A):
    – “A designated agent may
         • secure compliance with the council’s collective agreements by
             – publicising the contents of the agreements;
             – conducting inspections;
             – investigating complaints; or
             – any other means the council may adopt, and
         • perform any other functions that are conferred or imposed on the agent by the
           council”

2. Section 33(3):
    – “Within the registered scope of a bargaining council, a designated agent of the bargaining
       council has all the powers set out in Schedule 10.”
3. Section 10:
    – A designated agent may, without warrant or notice at any reasonable time, enter any
       workplace or any other place where an employer carries on business or keeps
       employment records, that is not a home, in order to monitor or enforce compliance with a
       collective agreement concluded in the bargaining council.
    – A designated may only enter a home or any place other than a place referred to in sub-
       item (1)
         • with the consent of the owner or occupier, or
         • if authorised to do so by the Labour Court in terms of sub-item (3)
    – The Labour Court may issue an authorisation comtemplated in sub-item (2)(b) only on
       written application by a designated agent who states under oath or affirmation the reasons
       for the need to enter a place, in order to monitor or enforce compliance with a collective
       agreement concluded in the bargaining council.
    – If it is practicable to do so, the employer and a trade union representative must be
       notified that the designated agent is present at a workplace and of the reason for the
       designated agent’s presence.
Section 10 continued:
     – In order t monitor or enforce compliance with a collective agreement a designated agent
        may:
         • require a person to disclose information, either orally or in writing, and either alone
            or in the presence of witnessess, on a matter to which a collective agreement relates,
            and require that disclosure to be under oath or affirmation;
         • inspect and question a person about any record or document to which a collective
            agreement relates;
         • copy any record or document referred to in paragraph (b) or remove these to make
            copies or extracts;
         • require a person to produce or deliver to a place specified by the designated agent
            any record or document referred to in paragraph (b) for inspection;
         • inspect, question a person about, and if necessary remove, an article, substance or
            machinery present at a place referred to in sub-item (1) and (2);
         • question a person about any work performed; and
         • perform any other prescribed function necessary for monitoring or enforcing
            compliance with a collective agreement.
Section 10 continued:
     – A designated agent may be accompanied by an interpreter and any other person
        reasonably required to assist in conducting an inspection.
     – A designated agent must
          • produce on a request a copy of the authorisation referred to in sub-item (3);
          • provide a receipt for any record or document removed in terms of sub-item(5)(e);
             and
          • return any removed record, document or item within a reasonable time.
     – Any person who is questioned by a designated agent in terms of subitem (5) must answer
        all questions lawfully put to that person truthfully and to the best of that person’s ability.
     – An answer by any person to a question by a designated agent in terms of this item any
        may not be used against that person in any criminal proceedings, except proceedings in
        respect of a charge of perjury or making a false statement.
     – Every employer and each employee must provide any facility and assistance at a
        workplace that is reasonably required by a designated agent to effectively perform the
        designated agent’s function.
Section 10 continued:
     – The bargaining council may apply to the Labour Court for an appropriate order against
        any person who
          • refuses or fails to answer all questions lawfully put to that person truthfully and to
             the best of that person’s ability;
          • refuses or fails to comply with any requirement of the designated agent in terms of
             this item, or
          • hinders the designated agent in the performance of the agent’s functions in terms of
             this item.
     – For the purposes of this Schedule, a collective agreement is deemed to include any basic
        condition of employment which constitutes a term of a contract of employment in terms
        of section 49(1) of the Basic Conditions of Employment Act.
                            13.2. Purpose of the visit:

1. Overview:
    – Ascertain information about an employee’s occupation- may require interaction between
      the wage clerk, the affected employee, the shopsteward and management.
    – Obtain copies of wage records.
    – Do headcount to ascertain employee strength.
    – Compliance Investigation-in order to complete a Compliance certificate
    – An investigation for any alleged Non-Compliance issue pertaining to the Main
      Agreement.
                           13.3. What To Have Ready:
1. Overview:
    – Weekly and ALL monthly records.
    – A copy of the current payroll for the Agent to take with.
    – Access to the clockcards or printout of the swiping(cards).
    – Leave Pay, bonus and increase payrecords.
    – Clause 17 cards and Service record cards.
  James Mentor
Financial Manager
                      14.1. Background:

1.   Database

2.   Reconciliation

3.   Billing
            14.2. Methodology Employed in Invoicing Cycle:

1.    Base month – (interpretation of agreement)

2.     Invoicing terminology
     1.   Working document
     2.   Proforma invoice
     3.   (Multi) – Adjustment invoice(s)
     4.   Finalized invoice
                           14.3. Prescribed Forms:

1.   BC2

2.   BC3

3.   Supporting evidence
                  14.4. Important Administrative Dates:

1.   Payment 14th of the month

2.   Payroll/remittance 14th of the month

3.   Generate working document – end of month

4.   Statements – end of month

5.   Finalized invoice – end of month

6.   Adjustment invoice – ad-hoc basis

7.   Provident statements – end of financial year
                14.5. Role of Client Information Officer:

1.   Friendly face of the Council

2.   Point of contact to the Wage Clerk

3.   Reconcile and advise appropriately

4.   Assist ad-hoc basis – system implementation
                              14.6. Housing Accounts:

1.    Capital amount

2.    Insurance, annual property rates

3.     Monthly interest
     1.  Debited to the account on the 1st day of each month as per the agreed rate

4.     Receipts
     1.   Direct payments by members
     2.   Stop order deductions

5.    Statement
                                     14.7. Other:

1.   Overview of other information
                 14.8. Questions:

1.   Thank you
    Charlotte Coon
Benefit Admin. Manager
                  15.1. Benefits Administered by the Fund:

1. Retirement benefits:
    1. Overview:
         • This benefit can be collected by the member at the age of 55 whilst working, but the
           member will be required to continue to contribute until the age of 65, or when
           terminated. Only one retirement benefit is allowed whilst working.

2. Disability benefits:
    1. Overview:
        • This benefit is payable if the member ceases work due to serious illness or injury. All
            applications must be referred to the member’s attending Health Care Centre by either
            the employer or panel doctor before the member’s services is terminated.

    2. Payment:
        • Member will receive their employee and employer contributions, plus 78 x basic
          weekly wage - OR 18 times their monthly salary - up to the maximum ceiling wage.
        • THIS WILL BE PAID IN ONE LUMPSUM.
3. Death benefits:
    1. Overview:
        • This benefit is paid to the deceased’s dependants and/or nominated beneficiary/s.
        • The final decision is made by the Provident Fund Board of Trustees.
        • A dependant is anyone who is legally dependant on you for maintenance e.g children
          and husband or wife.
        • A Dependant is also someone who can prove to the Provident Fund Committee that
          they were financially dependant on the deceased at the time of death.

    2. How do dependants/beneficiaries qualify to receive the death benefit?
        • The Provident Fund Board of Trustees considers all dependants when taking a
          decision as to who should be paid. This includes minor children who were dependant
          on the member even if they were not nominated as beneficiaries.
Death benefits continued:
    3. Non-dependant beneficiaries:
        • Do not automatically qualify to be paid the benefit. If the member nominates a non-
           dependant person, such as an elder brother/sister, then the Fund’s Management
           Committee must be satisfied the non-dependant is the only person legally entitled the
           benefit.

    4. Payment:
        • Employee and /er contributions, plus 78 x basic weekly wage - OR 18 times their
          monthly salary - up to the maximum ceiling wage.
        • THIS WILL BE PAID IN ONE LUMPSUM.
        • THIS PAYMENT IS EFFECTIVE 12 MONTHS AFTER DATE OF DEATH.
4. Withdrawal benefits:
    1. Overview:
        • This benefit is paid to members when leaving the Clothing Industry before the age of
          55.
        • Although members may apply immediately, the application will only be processed
          after three months.
        • Members may have to wait a further few weeks before receiving payment.

    2. Payment:
        • Employee/er contributions, plus interest.
        • This is non- taxable up to the amount of R1800-00.
5. Withdrawal benefits in cases of Retrenchment, Redundancy, Closure or Liquidation:
    1. Overview:
        • This benefit is paid to members when leaving the Clothing Industry because of
          being retrenched, made redundant or if the company closes down or is liquidated.
        • Members may apply for this benefit immediately, although they may have to wait a
          further few weeks before payment is received.
    2. Payment:
        • Employee/ Employer contributions, plus interest.
        • This is non-taxable up to the amount of R1800-00.
6. Transfer of Provident Fund Benefits:
    1. Overview:
        • Previously the fund processed Withdrawal Benefits for members who were earning
          above the ceiling limit referred to as “Salary in Excess”. Members received their
          benefits after tax. This is no longer permitted as the Fund is now permitted to effect a
          “Section 14” transfer, in terms of the Financial Services Board, consisting of
          multiple forms to be completed by the Principle Officer, the Funds Actuary and the
          Transferor / Transferee Fund.
        • Once all the relevant documentation is completed it is then forwarded to the FSB,
          which could take up to 4/5 months for their approval.
                             15.2. Maternity Benefits:

1. Overview:
    – If a member qualifies for Maternity Benefits, in terms of the provisions of the Main
      Agreement of the Bargaining Council, the Employer is obliged to contribute both his and
      the members’ contributions for a maximum period of six months, based on the wage /
      salary the member earned prior to the date she went on Maternity Leave.

2. The member may be entitled to the benefit if:
    – the member has continuously been employed in the industry for no less than one year OR
    – the member has continuously contributed to the Health Care Fund for no less than one
      year.
    – Maternity benefits are paid to a pregnant worker who has been terminated/or resigned at
      viability stage of no less than 22 weeks provided that the worker has:
        • continuously been employed in the industry for no less than one year OR
        • has continuously contributed to the Health Care Fund for no less than one year.
3. NO FAULT DISMISSAL (Change in Rule June 2003):
    – That maternity benefits now be paid to workers in the event of no-fault dismissal (i.e.
      retrenched workers who are pregnant), irrespective of the duration of their pregnancy
      provided that the worker has:
        • continuously been employed in the industry for no less than one year OR
        • has continuously contributed to the Health Care Fund for no less than one year.

4. Payment:
    – 25% of basic wage x 13 weeks.
                   15.3. Management of Disability Cases:

1. Overview:
    – This main purpose of the Provident Fund disability system is to assist members who
      suffer from chronic illness that may render them permanently unable to work in the
      Industry. We also provide a supportive role in managing members with chronic illness in
      the workplace.
2. Procedure for the management of the Provident Fund Ill-Health/Disability Claim:
    – All applications for Ill-Health/Disability benefits, whether initiated by the Employer,
      Panel Doctor or member, must be referred to the relevant Health Centre prior to the
      member being requested to stop working as a result of potential ill health/disability.
    – The professional staff at the Health Centre will evaluate the application and will manage
      the potential disability applications in a comprehensive manner. If there are any queries
      this should be directed to the attending Doctors at the Health Centre.
    – Where applications for Ill-Health/Disability benefits are made on behalf of members who
      are seriously ill, which have been substantiated by certificates from any major public
      sector hospitals (major public hospitals refers to hospitals such as Groote Schuur,
      Tygerberg, Victoria, Somerset, Karl Bremer, etc), the member should be allowed to stop
      work. A case of this nature will nevertheless still have to be referred to the Health Centre
      for appropriate case management.
3. Who should you send?
    – Patients who have been medically boarded.
        • E.g. Patients who have reached the end of the line with severe arthritis (has had X-
          rays and preferably visits to specialists in the past) and not someone who complains
          of joint pains without any referral or medical evidence.
    – Patients who have clear medical evidence of an inability to perform any occupation in the
      open labour market.
    – Only principal members can access this benefit.
    – Only members under the age of 55 years.
    – Only members who are to be considered for permanent disability benefits – there is no
      temporary disability from the Provident Fund.
4. How do you refer?
    – Phone Ms Patricia Mthandani on (021) 460-4128 to make an appointment at the Salt
      River Clinic, or the closest Health Centre the member normally visits.
    – Every patient is given a half-hour appointment slot and please emphasize to patients that
      they need to be punctual so that everyone is given the same amount of time.
    – If speech or communication is a problem, ask the patient to be accompanied by another
      family member/colleague on the day of the appointment.

    – If there are any further queries, please do not hesitate to call Patricia Mthandani on
      (021) 460-4128.
5. Disability Assessment Procedures:
    – Members who wish to have a disability assessment must be referred to there attending
       Health Care Fund Clinic.
    – Appointments for the initial Disability Assessment are available at each of the Funds’
       Health Care Centre.
    – There are three sets of forms that need to be completed. The employer and the member
       each complete a form. A full medical assessment form must also be completed. Once all
       three forms and other the relevant documentation is received, it is forwarded to the
       Benefit Admin Department for final processing.
    – The Benefit Admin Department submits all documentation to the Provident Funds’
       appointed Disability Assessors (Alexander Forbes). Alexander Forbes are specialist
       disability assessors and take about four weeks before they make a final recommendation
       about the members’ disability. The process could take longer if Alexander Forbes refers
       member to specialists for more reports.
    – The system is controlled and monitored from Benefit Admin department.
6. Work Assessment (Functional Capacity) Referrals:
    – Upon a patient/member being referred to Groote Schuur or Tygerberg Hospital or a
      private assessor for a work assessment, The Provident Fund provides limited financial
      support for the costs incurred during the assessment process.
    – The Provident Fund does not pay for any treatment or medical devices or equipment that
      a disabled member may need.
    – The Provident Fund will for example, pay the hospital or private assessor for the cost of
      the actual work assessment but will not pay for the members treatment (physiotherapy or
      occupational therapy) that may be recommended by the assessor.
    – The Provident Fund is responsible for paying the following fees:
        • Copies/Microfilm of Medical records
        • Original Report compiled by Doctor
        • Forms Completion (yellow and other forms)
        • Copies of X-Rays
        • Copies of CT scan
        • Specialist Functional Capacity Assessments
                         15.4. Housing / Cession Loans:

1. Overview:
    – Housing Loans in the form of Mortgage Bonds are no longer permitted as from 5th May
      2008, as in accordance with the Pension Funds Act
    – Mortgage Loans in existence as at the effective date shall continue to be administered in
      accordance with the Agreement
    – Mortgage Bonds so registered attract interest at the prime rate for members employed in
      the industry, whilst for members employed out of the industry, the interest rate is prime
      plus 1%
    – Cession Loans – The Fund will grant a loan based on 80% of the members fund credit.
      (See attached documentation for further detail)
Sophy van der Berg
 Clinical Director
                                     16.1. Definitions:

Introduction:
Each member of the Health Care Fund receives a Health Care Fund Card. This card serves as
    identification to the health service providers of this member and in addition, lists the names of
    their dependants as members of the Health Care Fund.

Principal Member:
An employee engaged in a factory in the Clothing Industry.

Dependant Member:
• A declared spouse of the contributor living at the same address
• The unmarried children under the age of 18 of the contributor, including natural offspring,
   stepchildren or adopted children; and
• The unmarried children of the contributor, including natural offspring, stepchildren or
   adopted children, over the age of 18 but under the age of 25, who are at school or who are
   full-time students at a tertiary institution or who are physically or mentally disabled.
            16.2. Membership and Level of Contributions:
•   Membership of the Fund is compulsory for all employees in the Clothing Industry earning below an
    agreed ceiling wage rate. The ceiling wage rate is determined on an annual basis through negotiations
    between the Trade Union and the Employers.




       Wage Groups                                         Health Care Fund
       Weekly                   Monthly                    Employee                  Employer
       R457.50–R597.00          R1982.50-R2587.00          Without dependents        R5.43/wk
                                                           R18.40/wk
                                                           With dependents
                                                           R23.10/wk
       R597.01–R1124.00         R2587.01– R4870.50         Without dependents        R6.49/wk
                                                           R20.40/wk
                                                           With dependents
                                                           R27.10/wk
       R1124.01 and over        R4870.51 and over          Members exempted into the Fund,
                                                           pay additional contributions
               16.2. Membership and Level of Contributions:
The following exception to the rules in above applies:
          • Where a principal member earns below the ceiling wage rate and is a dependant member on
             his/her partner’s/spouse’s medical aid, this member is obliged to be a member of the Health
             Care Fund. Their level of contribution is however limited to the equivalent of a single
             member’s portion.
          • Where a contributor has advanced in wage/salary to above the Council’s ceiling wage rate and
             wishes to continue their membership of the Health Care Fund, this continued membership of
             the Fund is authorised. The member having received the authority to be “exempted in” to the
             Fund will be required to make additional contributions other than that which they are
             contributing at present.
          • Principal members who earn above the ceiling wage rate of the Bargaining Council may be
             permitted to be a member of the Health Care Fund. Applications for new membership of the
             Health Care Fund will be considered provided that these employees pay an agreed contribution
             rate. The contribution level that these new members would be required to pay would be similar
             to as mentioned in (1.2.2) above.
          • Employees may apply to be exempted from membership of the Health Care Fund where these
             employees are the Principal members of a registered medical aid society offered through the
             company where they are employed. This exemption may be granted irrespective of the wage
             rate of the employee.
             16.3. Health Care Fund Benefits:


1.   Panel Doctor Benefits

2.   Health Centre Benefits

3.   Dental benefits

4.   Optical benefits

5.   Maternity benefit payments

6.   Hospital benefits
                        16.3. Health Care Fund Benefits:

1.    Panel doctor benefits
     – Principal members may attend a designated independent General Practitioner for primary
       care services. These independent General Practitioners are appointed on to a panel of
       Doctors who are directly contracted to the Health Care Fund to provide services to
       principal members on an agreed Schedule of Fees. Principal members are limited to a
       maximum of eight (8) consultations for which they are permitted to attend any of the
       General Practitioners contracted to the Fund. Where members exceed the maximum of
       eight (8) consultations, these members may visit any one of the seven (7) in-house health
       Centres of the Fund. These members are permitted to utilise both the services provided
       by the General Practitioners and those at the in-house Health Centres

     – Note: The curative services provided by Panel Doctors are similar to those provided at
       the in-house Health Centres

     – Members who reside in Malmesbury and Darling, but work in the Cape Metropolitan
       area are limited to the eight (8) consultation per annum, whereas those members and
       dependants who reside and work in the Darling and Malmesbury areas, have unlimited
       consultations.
                      16.3. Health Care Fund Benefits:
2. Health Centre Benefits
The Fund provides a package or “basket” of comprehensive (preventative, promotive, curative and
    rehabilitative) ambulatory primary care, i.e. “first contact walk-in outpatient care”. The package of
    ambulatory primary care provided includes: -
•   Child Preventative Health Services (growth monitoring)
•   Women’s Health (reproductive health and family planning, gynaecological
•           problems, domestic violence, counselling, etc.)
•   Maternal and Child Health (antenatal care, postnatal care, paediatric acute
•           curative care, etc.)
•   Adult Curative Care
•   Sexually Transmitted Diseases (Syndromic management)
•   Chronic Curative Care (adult and children)
•   Accident and Emergency Casualty Care (minor surgery, e.g. suturing, incision
•           and drainage, etc.)
•   Health Promotion and Education (special projects such as HIV/AIDS, anti-
•           smoking and chronic diseases of lifestyle, women’s health)
•   Occupational Health
•   Professional Counselling Services
                  16.3. Health Care Fund Benefits:
3. Dental Benefits
The following services are provided at the Dental Clinics: -
a. Dentist
Dentures:
Removable (Minimum 4 step denture process): every 5 years

Extractions:
• Straight
• Surgical
• Refer children under 6 to Hope street (theatre)

Fillings
• Silver amalgam/Composite
                       16.3. Health Care Fund Benefits:


3. Dental Benefits (cont)
b. Oral Hygienist
•    Scaling & polish (Tooth cleaning)
•   Protection of occlusal surfaces (fissure sealants)
•   Oral hygiene instruction related to the specific presenting dental problem
•   Desensitising teeth

The members may visit any one of our four (4) Dental Clinics situated in Athlone, Delft, Mitchells Plain
    and Salt River.
•   Patients must produce his/her Health Care Fund Card and Identity document.
•   Members may obtain Dentures from the Fund as follows: -
            • The member must make an appointment and will be notified well in advance of the date
               and time of the appointment with the Dentist.
            • Those members who have completed five (5) and ten (10) years’ service of the Health
               Care Fund are charged a reduced amount for their Dentures.
            • Members pay a deposit when they are advised of their appointments or payments may be
               made in three (3) installments before the Dentures are completed.
                     16.3. Health Care Fund Benefits:

4. Optical benefits
•   Optical examinations by a registered Optometrist employed by the Fund and prescription Lenses are
    supplied free of charge at the point of service. These frames may be selected from those on display
    in the Optical Department at Salt River and are reasonably priced.
•   An Optometrist is contracted to the Fund to service principal members in the Atlantis area.
    Dependants of these principal members in Atlantis are only permitted to be seen at the Optical Clinic
    in Salt River.


Optical Rules
•   Spectacles may be obtained from the Fund’s Optical Department on the following terms
•   to qualify for benefits, members must obtain their spectacles from the Fund’s Optician’s in Salt River
    and Atlantis and not privately.
•   It is necessary to make an appointment for an eye examination.
•   The member and employer will be notified of the appointment date when telephoning or calling in at
    the office.
•   Spectacle frames are selected immediately after the eye examination and members must bring
    sufficient money to pay for the frames.
•   After having been manufactured, the spectacles are fitted with lenses. The member will be advised
    of the collection date.
                     16.3. Health Care Fund Benefits:


5. Maternity benefit payments
•   To qualify for Maternity Benefits, the member has to continuously contribute for one (1) year and be
    a continuous member for a year. The benefit is payable four (4) weeks before the expected date of
    birth of the baby, i.e. when the member is 36 weeks pregnant. Maternity benefits are also paid in the
    case of an employee whose employment has been terminated or upon resignation, provided that the
    person was at a ‘viability’ stage of no less than 22 weeks at the time of termination or resignation.
•   The member has to produce a medical certificate from a health facility/hospital or Gynaecologist
    confirming that she is at least 36 weeks pregnant. The medical certificate from the Hospital has to be
    authorised and stamped or a computer generated label reflecting the patient’s name with no
    alterations. Medical certificates from Panel Doctors are not acceptable.
•   Adoption benefits are payable only when adoption procedure has been finalised and the necessary
    adoption documents are produced and signed by a Magistrate.
•   In the event of premature birth, the Birth Certificate or Clinic Card must be produced.
•   In the event of a miscarriage or stillborn birth, the member has to be more than 35 weeks pregnant to
    qualify for Maternity Benefits.
•
                     16.3. Health Care Fund Benefits:


6. Hospital benefits
A payment of R7.00 per day is paid to members who are hospitalised for 1 or more days, up to a
       maximum of 30 days.
                                 16.4. General Rules:

•   When applying for a Health Care Fund card, your Identity Document must be produced.
    When sending in someone else to apply for your card, a letter of authority on a company
    letterhead from the factory is required.
•   When consulting a Panel Doctor, attending any of the Health Centres or applying for benefits,
    positive identification together with your Health Care Fund card must be presented.
•   The Health Care Fund card is not transferable and is only valid for the principal member and
    their registered dependants.
•   If your Health Care Fund is lost, an amount of R2.00 for a new card will be requested.
•   Members must contribute for eight (8) weeks before they qualify to see a Panel Doctor or
    Health Centre. Dependants can be seen after the first contribution has been made.
•   When members’ employment is terminated, dependant benefits cease immediately while a
    Panel Doctor or a Health Centre can see the Principal member for eight (8) weeks from date
    of termination.
•   Fixed Term Contract workers can be seen immediately, therefore benefits cease on date of
    termination.
•   You will not be attended to at the Health Care Fund’s expense without producing your Health
    Care Fund Card or Identity Document.
                                       16.4. General Rules:
•   Two (2) hours paid leave per appointment is allowed for Dental, Optical or Gynaecology (Women’s
    Health) related appointments.
•   Parent to look after sick child certificates. Certificates that are issued by a public or private Hospital or a
    24-hour Health facility with overnight stay, where hospitalisation is a consequence of a child’s illness,
    must be acceptable to the Employer without the necessary verification of the Fund’s Centres. The
    certificate needs to clearly indicate that the parent of the child is required to look after the child as a
    result of the illness. Other certificates that are issued by private General Practitioners, including Panel
    Doctors, which indicates that the parent requires to look after the child because of the child’s illness, will
    still need to be verified by the Fund’s Health Centres.
•   Dependants may only attend the Fund’s Health Centres and will be entitled to benefits from date of
    registration.
•   Dependants over the age of 18 years have to provide proof that they are still studying at University,
    College, Technicon, etc.
•   Dependants over the ages of, 18 to 25 who are presently studying and have proof will be considered as
    dependants.
•   A disabled dependant may be admitted to or could continue membership of the Health Fund after the age
    of 18 but their membership could at any time after the age of 18 be revoked in terms of the discretionary
    power vested in the Health Care Fund Management Committee.
                                 16.5. Exclusions:

• The Health Care Fund is not responsible for the payment of accounts where
  members and/or dependants attend dependent General Practitioners who are not
  contracted to the Fund as part of the Panel Doctors; special/Hospital services (public
  and private sector); Pathologists; Pharmacy accounts; ambulatory emergencies and
  transport services; Radiology or any other specialised medical treatment or
  equipment.
• The Fund’s in-house Health Centres do not provide any routine Pathology and
  Radiology. In addition, these services are also not available through the system of
  Panel Doctors. Routine care for pregnant mothers, which may include Pathology
  and Radiology services, are obtained from public or private sector health facilities.
  Pregnant members are only allowed one (1) consultation to an independent General
  Practitioner (Panel Doctor) for pregnancy and thereafter are referred to the
  appropriate public or private sector health facility.
                         16.6. Exemption Applications:

The Health Care Fund Management Committee of the Council has the authority to grant
   exemptions in the following circumstances taking into account the provisions within the Main
   Collective Agreement of the Council: -
• Employees who are principal members of a registered Medical Aid Society are to be
   exempted.
• Children, who are registered as dependants on a medical aid scheme, are to be exempted.
• No exemption will be granted to a principal member who is a dependant on a spouse’s
   medical aid.
• Members, whose children reside in country areas, are to be exempted.
• In the case of long-term illness, the principal member would not pay contributions because no
   wages were being earned, but would nevertheless still be required to pay contributions in
   respect of dependants.
• If both the husband and wife are in the Clothing Industry and they have children, then the
   husband will be the principal member with dependants.
                                16.6. Exemption Applications:

•   In the case where a contributor’s dependants do not live in the RSA and/pr jurisdiction of the
    Council, it is up to the individual to apply for exemption and such a statement will have to
    stand up to scrutiny. Employers should make the double deduction for dependants until the
    Health Care Fund Management Committee deals with the exemption possibility. Refunds in
    such cases could be made if authorised by the Health Care Fund Management Committee.
     –   A rationale between granting this exemption is that the Council does not provide health services in certain
         designated areas. Where there is an application for exemption, irrespective of the reasons for the exemption,
         contributions that are made as a result of an error in the application of the Main Agreement, members may receive
         a refund of the deductions made in the following circumstances: -
     –   The date of application of exemption serves as the date from which refunds will be determined.
     –   Copies of all pay slips
•   If the husband of a contributor is a principal member of a medical aid and the wife
    (contributor) applies for exemption from membership of the Health Care Fund on the basis
    that she is a dependant member of a medical aid scheme, no refunds will be made of
    deductions, but contributions will cease from the date of exemption.
   Joseph Williams
Labour Affairs Manager
                         17. Compliance Certificates:
1.   Requirements to qualify for this certificate

2.   Advantages
      18. Exemption Applications as per Clause 19 of the Main
                    Agreement Requirements:
1.     Party & non-party exemptions:
     •    A 19B exemption is noted and recorded by the Council only if, the employer is a
          member of a party to the Council, its employees are represented by a trade union, and
          the shop steward signs the exemption application.

2.     Individual wage exemption:
     •     The employer, employee and the shop steward must sign all individual wage
           exemptions. The employer needs to provide a valid motivation for the exemption and
           also the proposal for future wage increases. These exemptions are submitted to the
           parties outside the exemptions meeting.
     •     The parties have 10 working days in which to reply to the exemption. If there is no
           reply from either party within 10 days, the exemption is deemed approved.

3.     All other exemptions except social fund exemptions:
     •     All other exemptions are submitted to the parties outside the exemptions meeting if the
           employer does not belong to a party of the Council, or the employees are not
           represented by a trade union. The parties have 10 working days in which to respond to
           the exemption. If there is no reply within 10 days, the exemption is deemed to be
           granted.
     •     If exemptions in slides 2 and 3 are declined, these exemptions are referred to the
           Exemptions Committee for consideration as per Clause 19A.
4.       Exemption application from social fund:
     •      All exemptions that affect employees’ benefits, such as Health Care and Provident
            Funds are submitted to the Exemptions Committee, which meets once a month.
     •      The Exemptions Committee considers and decides whether the application for
            exemption is granted or declined as per the criteria set out in Clause 19 of the
            Council’s Main Agreement.
     •      If the exemption is granted, the company is informed of such in writing, and the
            exemption is recorded on the system.
     •      If the exemption is declined the company is informed in writing of the Committee’s
            decision

5.     Exemptions Committee – Nuts and Bolts of the application:
     •    Where a company is dissatisfied with the Committee’s decision to decline their
          application for exemption, they may, within not more than 30 days refer the
          application, in writing to the Independent Exemptions Board (referred to as IEB),
          established by the Council.
6.     Appeal procedure to the Independent Exemption Board:
     •    The Ombudsman will consider and decide upon the application as it deems
          appropriate, and his decision is final.
         19. Enforcement Procedure of the Council in terms of
              Administrative and Financial Requirements:
1.    An overview of the Council’s enforcement procedure will be given. (refer to manual)

2.     Skills placement centre:
     •     Services rendered to the industry:
         •    The skills placement centre provides the services to the Clothing Industry in making the
              names of individuals as well as skilled labour to the industry.
         •    Vicky Scholtz at (021) 460-4063, vscholtz@cibc.co.za has a database available which
              enables us to transmit the following information to the industry:
              – Special skills that the manufacturer requires, i.e. lingerie machinists from Cape
                  Underwear or Charmfit.
              – Heavy apparel such as jeans, eg Sissy Boy Levi’s or Red Seal
              – We are also able to provide employers with a breakdown of any particular skills that
                  they require within a particular residential areas which accommodates a particular route
                  that employees may use when traveling to their workplace, i.e. an employer based in
                  Epping Industria may want to recruit employees from Bonteheuwel and/or Elsies River.
              – The data available further makes provision to identify ex-employees of the industry
                  who are registered on our system.
              – We can also provide an employment history of an employee in respect of their
                  experience gained in the clothing industry.
         •    This is an exclusive service that the skills placement centre provides for the industry.

				
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