FAST MOVING CONSUMER GOODS SECTOR

SUBSTANTIVE AGREEMENT

between

CHEMICAL, ENERGY, PAPER, PRINTING, WOOD AND ALLIED WORKERS’ UNION (CEPPWAWU)

GENERAL INDUSTRIES WORKERS UNION OF SOUTH AFRICA (GIWUSA)

SOLIDARITY

SOUTH AFRICAN CHEMICAL WORKERS’ UNION (SACWU) (hereinafter referred to as the “Unions”)

and

PARTICIPATING EMPLOYERS IN THE FAST MOVING CONSUMER GOODS EMPLOYERS ASSOCIATION (FMCG Employers) As listed in Annexure A

(hereinafter referred to as “employers”)

FOR THE PERIOD 1 JULY 2023 TO 30 JUNE 2025 

A.GENERAL PROVISIONS:

1.TERMS:

1.1 This Agreement will be applicable to all employees in the Bargaining Units as defined in existing Agreements between employers and the unions at company level.

1.2 This Agreement is between the unions and employers (companies) referred to in Annexure A. It may also apply to those employers (companies) who were not part of the process but who may subsequently agree to be covered by its terms.

1.3 Existing employment terms and conditions not referred to in this agreement will remain status quo. Any existing condition, which Is more favourable than the conditions contained within this agreement, will remain in force at company level.

1.4 The terms of this agreement are in full and final settlement of substantive wages and conditions of employment as tabled and negotiated for the period 2023/2025 between the unions and participating employers.

2.EFFECTIVE DATES AND DURATION :

Substantive terms and conditions envisaged in this two-year Agreement shall be effective from 1 July 2023 and remain in force until the 30^th of June 2025.

B.SUBSTANTIVE TERMS AND CONDITIONS:

An agreement has been reached between the employers and the unions on the following matters:

3.SCOPE OF AGREEMENT:

To be referred to a task team with full negotiating teams and in accordance with Council procedures. The task team to finalise this issue by end of December 2023.

4.

5.PATH TO ZERO HARM:

To be referred to a task team with fell negotiating teams and in accordance with Council procedures.

C.EXEMPTION PROCEDURE:

Any participating company seeking exemption from any of the conditions of this agreement and/or any conditions agreed to previously through centralised bargaining between the parties, should do so according to the Council's exemptions procedure. (See Annexure *B°)

D.DISPUTE PROCEDURE:

If there is a dispute about the interpretation or application of this agreement, any party may refer the matter to the Council for resolution in ternis of the Dispute Resolution procedure of the Council.

E.PEACE OBLIGATION:

a.Neither party to this Agreement shall engage in any form of industrial action against the other party regarding any disagreement on wages and other substantive conditions of employment which are covered by the current Substantive Agreement for the period between 1 July 2023 and 30 June 2025, including agreements reached previously and which are still applicable for the entire period of the said agreement, unless the disagreements arises out of the implementation and interprétation of the agreement, in which case any party may refer the matter to the Bargaining Council for the Chemical industry for resolution in terms of the Dispute Resolution prooedure of the Council.

b.For the purpose of this Agreement, “industrial action’ means “strikes” and “lock-outs’ as defined in the Labour Relations Act, 66 of 1995.

c.Any party who reneges on any of the provisions of this Agreement, and who does not comply with the conditions of this Agreement, shall be in breach thereof.

ANNEXURE A

LIST OF PARTICIPATING COMPANIES

FAST MOVING CONSUMER GOODS EMPLOYERS ASSOCIATION

AJ North (Pty) Ltd.

Avon Justine (Pty) Ltd.

Avroy Shlain Cosmetics (Pty) Ltd.

BLSA Industries (Pty) Ltd.

Colgate Palmolive

Consumer-a Division of Tiger Consumer Brands Ltd. Geochem (Pty) Ltd.

Indigo Brands (Pty) Ltd.

Johnson & Johnson (Pty) Ltd.

L’Oreal SA (Pty) Ltd.

Mosaic Manufacturing RB Pharmaceuticals Reckitt Benckiser

Revlon - Elizabeth Arden South Africa (Pty) Ltd. Rolfe Laboratories

Unilever SA (Pty) Ltd. - Maydon Wharf and Phoenix

FAST MOVING CONSUMER GOODS SECTOR

SUMMARY OF NEGOTIATED SUBSTANTIVE CONDITIONS OF EMPLOYMENT

SCOPE & TERMS OF AGREEMENT:

The negotiated substantive conditions of employment, as detailed hereunder, will be applicable to all employees in the bargaining units of participating companies as defined in existing agreements between employers and the participating unions at company level.

The conditions of employment may also apply to those employers (companies) who were not part of the negotiations process but who may subsequently agree to be covered by these terms.

Existing employment terms and conditions not referred to hereunder will remain status quo. Any existing condition, which Is more favourable than the conditions contained in the agreements, will remain in force at company level.

NEGOTIATED ISSUES

1.Minimum Wage:

The current minimum wage of R8 341.07 (eight thousand three hundred and forty one rand and seven cents) will be increased with effect from 1 July 2023 to R8 924.94 (eighty thousand nine hundred and twenty four rand and ninety four cents) and will remain in force till 30 June 2024.

For the period 1 July 2024 to 30 June 2025, the minimum wage of R6 924.94 will be increased by the average CPI plus 1.00% with a floor of 5.50% and a ceiling of 7.00%. (Average CPI wflf be the average of the Headline CPI for the 12 months May 2023 to April 2024).

This minimum will also apply to any company, not listed in Annexure "A" who also becomes part to this agreement. 

2. Entry Level Wage:

The entry level wage for new permanent employees will be at actual company minimum applicable to the grade/category for the job.

However, this may be reduced by an agreement concluded at plant level between the employer and respective trade union(s) on condition, firstly, that foe company undertakes not to resort to the use of labour brokers for those jobs and for foe duration of the agreement Secondly that the negotiated entry level wage will not be lower than the agreed sector minimum wage.

In the event that foe parties foil to reach agreement, the status quo, l.e. that the entry level wage will remain at actual company minimum, will continue to apply.

3.Annual Bonus:

A thirteenth cheque (4.33 times the basic weekly rate) is agreed. Pro-rata bonuses will be paid on termination of contracts for retrenchment, ill health, retirement and death in service.

4.Leave:

4.2 Sfek Learn:

4.2.1 Sick Leave:

Sick leave will be granted as per Basic Conditions of Employment Act, 1997 or as amended in future.

4.2.2Prolonged Sick Leave and Traditional Healers:

Employers agree in principle to consider sympathetically, payment for extended sick leave. Each application will be considered on its merits and requires a medical certificate. A shop steward should assist an employee in this regard.

4.3

4.6 Compassionate Leave:

Compassionate leave of 5 (five) days per occasion will apply following legitimate application from the employee. Such leave w8I only be granted in the event of the death of parents, spouses, children, legally adopted children, brothers and sisters or fathers and mothers in law, adoptive parents and grandparents.

4.7 Study Leave:

Study leave of 1 (one) day per subject plus 1 (one) day per examination written to a maximum of six days per annum. Prior approval of subjects/courses must be obtained from the employer. 

4.8 Special Leave for Shop Stewards:

Shop stewards will be entitled to 5 (five) days special leave per shop steward per annum. This leave is not to be pooled or accumulated.

The minimum of 5 days for shop stewards leave will exclude days where a shop steward is an official of a committee of the CCMA, NBCCI, CHIETA and the provident fund. The relevant union official should formally inform the company of the request to attend to committee duties and time-off should be approved by the company.

4.9 Disaster Leave:

A disaster is defined as a sudden, abrupt or unpredictable circumstance which causes human, material, economic or environmental losses, exceeding the ability of the affected employees to cope with them i.e. floods, storms, lightening and fire.

Employees affected within the agreed definition shall inform their employers of their predicament and request time off. Such request for the time off shall not be unreasonably withheld by the employer. Employees dissatisfied in this regard shall be dealt with in terms of the grievance procedure.

Employees will be entitled to 3 days disaster leave from 181 of July 2022.

5.Public Holidays:

Employees wifl be entitled to those public holidays covered by the Public Holidays Act, and payment for work on those days will be as per the Basic Conditions of Employment Act, 1997.

6.Shift Allowance:

8.Job Security:

The issue of job security will be referred to plant level with all legal rights of the parties reserved.

9.Sector Job Grading:

The issue to be referred to the Bargaining Council.

10.Path to Zero Harm:

To be referred to a task team with full negotiating teams and in accordance with Council procedures.

11.Just Transition:

To be referred to a task team with full negotiating teams and in accordance with Council procedures.

12.Task Team:

All matters referred to the Task Team must be concluded by end of December 2023.

ANNEXURE B

EXEMPTION PROCEDURE

1. INTRODUCTION:

In terms of a Part of the Substantive Agreement, companies seeking exemption from the conditions of this agreement and/or any conditions agreed to previously through centralized bargaining between the parties, should do so according to this procedure.

Applications and procedure for exemptions are regulated by clause 16 of the Constitution.

Where appropriate, provisions of Section 32(3) of the Labour Relations Act (The Act) as amended shall be considered.

The relevant primary objectives of the Act within the context of the advancement of economic development, social justice, labour peace and democratization of the workplace, are found in section 1(d) of the LRA which reads: -

(i)orderly collective bargaining;

(ii)collective bargaining at sectoral level;

(iii)employee participation in decision making in the workplace, and

(iv)the effective resolution of labour disputes.

2.PRE & POST COUNCIL PROCEDURE:

2.1 CONSULTATION:

2.1.1 Any application for exemption must be preceded by consultations between the relevant employers and employees potentially affected by the exemption at which:

a)the merits and any exemption to have been applied for have been considered; and

b)there has been full disclosure to each other on all information relevant to the consideration of exemption.

2.1.2 The following provisions apply regarding consultations: -

i. Each employer must hold such consultations with the trade union representative(s) of the affected employees.

ii. If an employer reasonably believes that the affected employees are not trade union members, or where the relevant trade union representatives do not avail themselves for such consultations within a reasonable time, the employer must consult the affected employees themselves.

iii. The affected employees, or groups of such employees, may act through a nominated representative that they have elected to represent them. Once they have informed the employer of such representative the employer must, regarding such employees, consult such representative in preference to the trade union to which they belong.

2.1.3 The applicant company must commencing at least immediately before the application is made to the General Secretary display a copy of the application in a conspicuous place in the workplace(s) where the affected employees normally report for service and ensure that it remains displayed until the exemption license has been granted in terms of these procedures, the appfication has been withdrawn or the application has been dismissed by the National Exemptions Committee.

2.2 CONCILIATION & ARBITRATION PROCEDURES:

2.2.1 The employer if it so wishes to pursue its application for exemption, must within the 30 day period apply to the General Secretary of the council for third party intervention whereupon the Council will provide for a 30 day period for a facilitation/concfliation process to convene.

2.2.2 If the parties can still not reach agreement within a further period of 30 days, the panellist will issue a certificate to the effect that the matter cannot be resolved.

2.2.3 The matter shall then be referred to the National Exemption Committee within a period of 60 days for arbitration.

2.2.4 The parties to exemption hearing must hold a pre-exemption trial in dealing with the matters referred to in Rule 20, (2) of the rules in conducting the proceedings before the National Bargaining Council for the Chemical Industry.

2.2.5 The employer will be required to produce evidence of compliance with Clause 1 of this procedure i.e. "Steps preceding an application for exemption.”

2.2.6 The evidence required will also indude: -

Clear evidence of the finandal difficulties facing the employer including: -

- The most recent set of annual finandal statements and auditor’s report signed by the auditors (or accounting officer in the case of CC's).

-Management accounts for the period from the date of the finandal statements to two months prior to the date of the application.

-An application may refuse to be accepted by the General Secretary until the requirements of Clause 5 have been complied with.

2.2.7 The National Exemptions Committee must consider the application and make the following determination:-

(a)Whether a refusal to grant an exemption will result in undue financial hardship to the company make the application;

(b)The nature and size of the business in respect of which the application is made;

(c)Any representations made by the employees likely to be affeded by the application;

(d)The drcumstances prevailing in the Chemical Industry as a whole or the sectors likely to be affected by the application, and

(e)Whether the granting of the exemption will prejudice the objectives of the Council.

2.2.8 The dedsion of the National Exemptions Committee will be final and binding.

2.2.9 The chairperson or another member of the National Exemptions Committee, acting on the decision of that Committee, shall inform the General Secretary in writing of any decision made by the Committee and its brief reasons.

2.2.10 Once the General Secretary has received the decision of the National Exemptions Committee in terms of this procedure, he/she shall: -

-Issue an exemption award or vary an award already issued; or

-Transmit any other decision of the National Exemptions Committee to the parties to the exemptions dispute as directed by the National Exemptions Committee.

-The National Exemptions Committee would be expected to make its decision within 14 days of having concluded the matter.

3.HOW TO FILE AN APPLICATION FOR EXEMPTION WITH THE COUNCIL:

3.1 All applications must, in the first instance, be submitted in writing to the specific sub-sectors co-ordinator or secretariat.

(i) The sector co-ordinator or secretary must, within 10 working days of the date of the last party signing this agreement, forward copies of the applications received from the participating member company to the General Secretary of the National Bargaining Council for the Chemical Industry as well as to the relevant union(s).

(ii) The date of the collective agreement in question is taken from the date on which the last signature of a party to the agreement is recorded.

(iii) All applications must specify provisions of the agreement in respect of which the exemption is sought and foe reasons why it is sought, and details of the employees in respect of when exemption is sought either by name or by way of a clear description of the category of employees and an introduction of how many employees fall within the category.

3.2 All applications for exemption will be dealt with in terms of this procedure.