The Impact of Labour Law on the Motor Industry

The motor industry is a vital sector in South Africa, contributing significantly to the country's economy. The motor industry is regulated by the Motor Industry main agreement and has its own bargaining unit. In short it has its own conditions of employment that are more specific than the basic conditions of employment.

The motor industry main agreement is so specific that it dictates the minimum salaries that are to be paid to employees in specific positions and across sectors. It also regulates who can be hired in what position, at what rates overtime should be paid on which day and to whom.

The motor industry also dictates that every employee within its scope should be registered under MIBCO and that contribution should be paid towards their pension and provident funds for retirement. The Motor Industry is made up of two parties.

The RMI and FRA represent the employers in the motor industry and MISA and NUMSA represent the employees. The 4 parties meet every three years and negotiate the terms of the motor industry main agreement which will be in effect for the next 3 years. The motor industry main agreement prohibits shop floor level negotiations, which means that none of your employees can embark on industrial actions based on your refusal to agree to terms that are brought to you directly. Shop floor level negotiation is only allowed in sector 6 businesses (Dealerships) Furthermore, labor law in the motor industry helps to establish a level playing field for both employers and employees. It sets minimum standards for employment contracts, including provisions for leave, overtime, and benefits. This ensures that workers are not exploited and are provided with the necessary protections and benefits. On the other hand, labor law also provides employers with the legal framework to manage their workforce effectively and make informed decisions that comply with the law. In conclusion, if you operate a business that falls under the ambit of the the motor industry, you need to be familiar with the nuances of the sector. It is not impossible to do alone, but it is highly specialised and we can help you navite it.