Bargaining Council Update: Outcome of Substantive Negotiations
Below is a summary of the outcome of Substantive Negotiations between the EOHCB and UASA the Union, and what this means for the industry. The full article is below, and w have included a short video to summarise the info.
Outcome of Substantive Negotiations between The Employers Organisation for Hair, Cosmetology and Beauty (EOHCB) and UASA – The Union
On Friday 13 September 2019 The Employers Organisation for Hair, Cosmetology and Beauty (EOHCB) and UASA – The Union (Hereafter referred to as the Parties) concluded their negotiations.
• The agreement will be effective from 1 September 2019 and applied to the members’ and effective to non-parties from the date of publication of the main agreement by the Minister of Labour.
• The Parties confirm that the National Minimum Wage Act signed by the President and effective 1 January 2019 are adhered to by the industry.
• The Parties agreed that with effect from 1 September 2019 the prescribed minimum salaries/wages per job category as contained in the relevant schedules of the main agreement be increased with 7% in all areas excluding the Free State Province, Kimberley, North West, Border/East London and Eastern Cape where it will be increased by 6%.
• The Parties agreed that, a once off ex-gratia payment equal to 5.5% of the current prescribed minimum salaries/wages applicable to the job designation of employee shall be paid either the end of September 2019 or alternatively, in three equal instalments at the end of September, October and November 2019.
• Employees who received an increase of more than 5.5% in January 2019 due to the implementation of the National Minimum Wage or employees that are paid an actual wage of equal to or more than the prescribed minimum wage plus 5.5%, will not receive any further increase and or ex-gratia payment.
• Employees that received an increase that was less than 5.5% calculated on the prescribed minimum wage, shall receive an additional increase equal to the percentage difference between the increase received and 7% in all areas excluding the Free State Province, Kimberley, North West, Border/East London and Eastern Cape where it shall be calculated and paid on the difference between the increase received and 6%.
• The parties agreed that all learners and students registered with the council shall be exempted from contributing to the pension fund and Council fees. Should the learner or student towards the end of their training start generating income on the floor, they have to contribute as full time employees. This exemption shall not apply to any of the other trainee categories in the main agreement.
Due to the time-lines, the following will apply:
• That the deductions for September 2019 was be based on the 2018 salary as per the returns that went out. Therefore the salary increase applies to September 2019 and the new contributions applies only from October 2019.
• The amendments as per the negotiations will then be concluded by the Council before the October 2019 billing run.
• It is also important to note that the ex gratia 5.5% is based on the 2018 salaries (use August 2019) as a once off. This is not a retrospective payment back to January 2019 but only a once off based on the August 2019 salary. For example: August 2019 salary x 5.5% = Ex gratia payment that should have been made in September 2019 or alternatively could be done in instalments but has to be done by end of November 2019.