Tuesday, 16 July 2013 17:00

Building industry agree on wage increase

The Building Industry Bargaining Council (Cape of Good Hope) has announced the conclusion of wage negotiations, which began in May this year. The parties concluded a three year wage agreement. These increases will be applicable from 1 November 2013, 1 November 2014 and 1 November 2015. The parties took cognisance of government's call to consider the high unemployment rate and negative investor sentiment due to high wage increases and labour unrest. An average minimum increase of 7.5% was agreed to for the Cape Peninsula area.

The newly negotiated Collective Agreement includes staggered wage increases applicable from 1 November 2013 through to 31 October 2015 where after a new agreement will be negotiated. The benefit of this type of negotiation is that the industry can avoid wage strikes for the next three years, an advantage that the industry can justifiably be proud of. ""There have not been industry wide strikes within the jurisdiction of the BIBC in at least 20 years,"" said Arnold Williams, Secretary for the Building Industry Bargaining Council (Cape of Good Hope).

Most importantly, negotiations were conducted in an amenable manner and the parties reiterated their commitment to maintaining labour peace in the industry.

The Bargaining Council will now apply to have the increases, as well as other negotiated changes to the agreement, extended to non-parties by the Minister of Labour. Some of these changes to the Collective Agreement include a new category of employee and some changes to the definitions of certain employee categories. These changes will be published on the BIBC's website once the Minister has approved and extended the amendments.

The Collective Agreement is:

  • aimed at ensuring stability in the building industry and governs the industry as a whole
  • covers the critical elements of minimum wages and benefits, clauses that have wide-ranging effects on the industry
  • applicable to employers and employees in the Peninsula, Boland, Malmesbury and Overstrand 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

For further information, visit www.bibc.co.za.