On the 18th of December 2020, the Minister of Employment and Labour, Minister Nxesi extended the Collective Agreement of the BCRCAT (Bargaining Council for Fast Food, Restaurant, Catering & Allied Trades) to all non-parties in terms of section 32(2) of the Labour Relations Act.
This would mean that all Employers and Employees within the industry would be bound by the provisions of the Collective Agreement.
What Now?
Where does this leave Employers within the industry previously not bound by the Bargaining Council?
Employers within the industry would have to register with the Council within thirty days after the publishing of the extension to non-parties.
What would be the key differences both financial and operational?
- The Minimum Wage of the industry would be regulated by the Council for the industry and current wages be adapted thereto.
- Annual
Bonuses would be compulsory and payable as follows:
- After 12 months’ worth of service – one weeks’ worth of wages during December.
- After 24 months’ worth of service – two weeks’ worth of wages during December.
- Two
new allowances become payable to employees:
- Night Work Allowance:
- For every hour worked between 18:00 and 06:00, a R1 per hour allowance should be paid or the employee be granted at least 10 minutes time off on full pay.
- Uniform Cleaning allowance:
- In the event that employees clean their own work uniform / apparel, an amount of R17.50 per week should be paid for every week worked.
- Night Work Allowance:
- Two
new Employee benefits have been established:
- Funeral Insurance Scheme:
- Every employer shall in respect of each month deduct R12.50 from each employees’ wages payable and contribute an equal amount.
- Provident Fund:
- To provide employees with Provident Fund Benefits, Employers shall in respect of each month deduct 5% from each employees’ wages and contribute an equal amount
- Funeral Insurance Scheme:
- Council
fees become payable:
- To meet the expenses of the Council and its dispute resolution function, R5 and R3 respectively is to be deducted from employees per month.
- Employers are to contribute an equal amount to the aforementioned, in addition to R25 from each Employer.
- The number of working days are expressly prohibited from being more than six days per week per employee.
- The Employer must display a copy of the Collective Agreement in a prominent place in the workplace and make it available to an employee on demand.
Arno Swart – Industrial Relations Product Manager: LabourNet Eastern Cape
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