SARACCA at a glance – What is a Bargaining Council?

Director of SARACCA John Parry has introduced a new column called “SARACCA at a glance”. In this column, John will speak to need-to-know information for all SARACCA members and give reminders with regards to pertinent information and give further insight into the processes behind the scenes. 

As a member of SARACCA, there is a legal requirement to be a member of a Bargaining Council. This is not optional as it is a legal requirement for all employers to be compliant. The Bargaining Council is a leg of industry which oversees due diligence processes.

What is a Bargaining Council:

A Bargaining Council is a statutory body created under the Labour Relations Act (LRA) to provide for the co-regulation of stable and productive employment relations. The Air Conditioning and Refrigeration industry falls under the Metal and Engineering Industries Bargaining Council (MEIBC).

The duty of the MEIBC is to regulate employment conditions and labour relations. It also sees to the necessary administrative measures to ensure effective collective bargaining. The MEIBC also facilitates wage negotiations and drafts the main agreement. On the social side, it manages the provident fund, pension fund, sick fund and dispute negotiation fund.

MEIBC Levies and Contributions:

In our industry we belong to the Metal and Engineering Industries Bargaining Council (MEIBC) and we need to make monthly payments to the Metal Industries Benefit Funds Administrators (MIBFA) on behalf of members. These levies are updated periodically and paid on a weekly or monthly basis and mandated by the Steel and Engineering Industries Federation of Southern Africa.

The MEIBC levies and contributions are applicable to all companies falling within the registered scope of the Metal and Engineering Industries Bargaining Council (MEIBC). As of 1 April 2023, the Administration levy is payable by each scheduled employee at R2.10 per week and R9.09 per month. The employee is matched with a contribution paid by the employer.

The Dispute Resolution levy is also payable by all employees with a matching contribution paid by the employer. The Dispute Resolution levy is charged at R0.76 per week and R3.30 per month.

It is important to note that where the total amount payable to the council is less than R175 per month, employers are no longer required to make this amount up.

After taking the above into consideration, are you and your sub-contractors compliant?

Ensure that your business remains compliant by looking out for this monthly column where we talk all things SARACCA, all the time. Making sure you remain in the loop on everything you need to know to ensure compliance and ethical trading in your business.