The Department of Labour granted the Building Industry Bargaining Council Cape of Good Hope the right to increase its area of jurisdiction, to include the Overstrand Local Municipality, last year.
Following on from this announcement, negotiations have been concluded to confirm the relevant basic wage and benefits that are now applicable for the various parties.
Employers and unions within the building industry of the towns of Gansbaai, Hangklip, Hermanus, Kleinmond and Stanford, which are now governed by the same Collective Agreement as the areas within the Peninsula, Boland and Malmesbury, have agreed to relevant basic wage and benefits applicable to 'Area C'.
This means that the basic wage and benefits that apply to Malmesbury, will also apply to the Overstand Local Municipality.
There is a proviso, namely that the General Worker category's basic wage be reduced from R19.18 to R17.16 per hour and that the related benefits be calculated using this rate.
These rates will be applicable from 1 November 2012 to 31 October 2013 and were agreed to by the following parties: Master Builders and Allied Trades' Association Western Cape; Master Builders and Allied Trades' Association Boland; Building Worker's Union; Building, Wood and Allied Workers' Union of South Africa; Building Construction and Allied Workers' Union of South Africa; and the National Union of Mineworkers.
In addition to the basic wage, the Collective Agreement governs annual bonuses, levies, medical aid, sick payment funds, public holidays, pension and provident funds. It is estimated that approximately 200 builders in the Overstrand area will be directly affected.
The Building Industry Bargaining Council (Cape of Good Hope) Collective Agreement presently oversees:
- Cape Peninsula
- Somerset West