Columbus Stainless (PTY) LTD Columbus Stainless - 2008

Start date: → 2008-07-01
End date: → 2013-06-30
Name industry: → Manufacturing
Name industry: → Manufacture of basic metals, Manufacture of fabricated metal products, except machinery and equipment
Public/private sector: → In the private sector
Concluded by:
Name company: → Columbus Stainless (PTY) LTD
Names trade unions: → National Union of Metal Workers of South Africa (NUMSA), United Association of South Africa (UASA), Solidarity

TRAINING

Training programmes: → Yes
Apprenticeships: → No
Employer contributes to training fund for employees: → Yes

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → Not specified %
Maximum days for paid sickness leave: → 20 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → 
Paid menstruation leave: → No
Pay in case of disability due to work accident: → Yes

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 6 weeks
Maternity paid leave restricted to 67 % of basic wage
Job security after maternity leave: → No
Prohibition of discrimination related to maternity: → No
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
Facilities for nursing mothers: → No
Employer-provided childcare facilities: → No
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → No
Paid leave per year in case of caring for relatives: → 3 days
Paternity paid leave: → 3 days

WORKING HOURS, SCHEDULES AND HOLIDAYS

Working days per week: → 6.0
Paid annual leave: → 18.0 days
Paid annual leave: → 3.0 weeks
Paid bank holidays: → Christmas Day, Chile Independence Day (18th September), John Chilembwe Day (15th January), Madaraka Day / International Children’s Day (1st June)
Rest period of at least one day per week agreed: → Yes
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 1

Once only extra payment

Once only extra payment due to company performance: → No

Premium for evening or night work

Premium for evening or night work: → 124 % of basic wage
Premium for night work only: → Yes

Payment for standby work

Payment for standby work Sundays only: → 
Payment for standby work all days per week: → Yes

Premium for overtime work

Allowance for seniority

Allowance for seniority: → ZAR 1000.0 per month
Allowance for seniority after: → 5 years of service

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
New1

COLUMBUS STAINLESS SUBSTANTIVE AGREEMENT (01 JULY 2008 - 30 JUNE 2013) BETWEEN COLUMBUS STAINLESS AND SOLIDARITY, UNITED ASSOCIATION OF SOUTH AFRICA (U.A.S.A) AND NATIONAL UNION OF METAL WORKERS OF SOUTH AFRICA (N.U.M.S.A.)

SCOPE AND APPLICATION

These conditions of employment apply to the hourly paid job categories. (Grade 13-09)

Should certain terms and/or conditions of employment be omitted or be incorrectly recorded herein, then such terms and/or conditions of employment shall be inserted or amended whichever the case may be.

LONG TERM AGREEMENT

The PARTIES have concluded an agreement (effective from 01/07/2008 to 30/06/2013) which covers the following:

1. WAGE INCREASE

1.1 Wage increase model for increases effective 1 July 2008

The greater of the actual May CPI or CIPX figure as issued by the Central Statistical Services will be used for the determination of the fixed increases as determined by the “model”, for the duration of this agreement.

1.2 Current individual performance appraisal system and criteria will apply to assess employees for the purpose of 2008 increases. Parties agree to engage into consultations to finalize the appraisal system for future assessments.

1.3 Employees will be awarded increase in terms of the individual appraisals referred to in 1.2 above.

1.4 Rules and guidelines pertaining to the current “Production incentive scheme” will apply in the instance of the incentive value. Parties agree to introduce a penalty on sick leave. WEF 1/07/2008.

1.5 The model to apply for the duration of the agreement will be as follows”

“A”

CAT

“B”

% CPI

C “D”

Plus 1%

(once off)

1 =20% 120% 13,7%
2 =40% 110% 12,7%
3 =40% 100% 11,6%
“E” Maximum Incentive Value 2008

20%

1/1/09

21%

1/1/10

22%

1/1/11

23%

1/1/12

24%

1/1/13

25%

- Percentages included in column “A” of the model refers to employees ranked by virtue of their performance evaluation.

- Figures included in column “B” of the model refers to percentages of the Actual to May CPIX / CPI figure offered as a fixed increase.

- Percentages under column “C” refers to percentages of maximum incentive value.

- Percentages in row “E” refers to the additional maximum incentive value employees could earn over and above their normal pay.

- Incentive value will be based on the individual employees actual pay rate.

- Column D will be a once off additional 1% in return for using the current P.A. document for July 2008.

- All wage linked conditions of employment will for years subsequent to 2008 increase with the greater of the May CPI or CPIX figure.

- The agreement will be in force for 5 years and will expire on 30 June 2013.

- Values expressed in the model will apply for the duration of this agreement.

NOTE: Line Managers will have the discretion to award increases which are 1%-5% below the guaranteed CPI/CPIX increase where there is obvious, clearly documented and prolonged poor performance. This rule will apply for the duration of the deal.

Rules to be agreed as part of the performance appraisals consultation. This principle will not apply for the July 2008 increases.

1.6 Escape Clause

* Should the electricity crisis worsen and undermine the company’s competitiveness and viability the wage linked component of the deal will be renegotiated.

* Should CPI/CPIX exceed 15% or fall below 5% the indicator used as a base for increase will be re-negotiated.

2. OTHER LONG TERM AGREEMENT CONDITIONS

2.1 Wage linked benefits and conditions of employment

2.1.1. All payments, benefits or allowances that are paid as a function of the wage rate will be based on the new rate from 1 July 2008 and subsequent years and will not be negotiated in the agreement period. These include, but are not limited to:

a) Thirteenth cheque (annual bonus)

b) Shift and standby allowances

c) Overtime

d) Variable travel reimbursement at a rate per km as determined by SARS to be tax free.

2.1.2. The following payments and reimbursements will be increased as indicated below and will not be negotiated during the agreement period :

e) Tea allowance will annually be increased by the same percentage as the May CPIX/CPI rate as issued by the Central Statistical Services.

f) The telephone reimbursement will be increased by the same amount as Telkom charges increase.

g) The call-out payment for 2008 will be increased by 30%. Thereafter the May CPIX/CPI rate as issued by the Central Statistical Services.

2.2 Consultative reviews with Union Officials

Management agree to arrange six monthly review meetings with union officials and representatives to share information pertaining to the following:

a) Company performance/productivity

b) Skills development

c) Investment programme

3. OVERTIME

3.1 All hours worked in excess of ordinary hours of work shall be paid as overtime.

3.2 Payment for overtime shall be in accordance with the schedule attached hereto marked “1”.

3.3 In the event of an employee being absent with permission during the course of ordinary hours of work, he shall not be required to work in the period of absence before becoming entitled to overtime rates in the same pay week.

However, an employee who is absent without permission, shall be required to work in such hours that he was absent before becoming entitled to overtime rates in the same week and this will include Sundays.

4. WAGES PAYMENT

4.1 Wages shall be paid monthly prior to the 27th of each month.

4.2 Payment for public holidays shall be in accordance with the schedule attached hereto marked “1”.

4.3 Wages shall be calculated at the rate per hour for each job grade stipulated in the schedule attached hereto marked “2” for each hour or part thereof worked.

4.4 An hourly paid employee who is on shift and who works ordinary hours on a Sunday shall be paid at 1.4 times his/her hourly rate for the first 8 hours worked, and thereafter at twice such rate.

4.5 Incentive portion of the wage model and the monthly bonus option will be paid out on the 15th of each month.

5. SHIFT PREMIUM (allowance)

5.1 Shift premium shall only be paid to employees where normal working hours are determined by the permanent cycle and rotation of shifts arrangement, and shall be payable for the afternoon and night shifts only.

5.2 Shift allowance shall be calculated as follows:

- afternoon - 12% of monthly wage

- night - 24% of monthly wage.

5.3 Columbus shall pay such an employee an overall shift allowance of 12% for a complete three shift cycle.

5.4 Where a rostered shift schedule includes afternoon shift only (and excludes night shift work) an overall shift allowance of 6% shall be paid.

6. STANDBY PREMIUM (allowance)

Hourly paid 5 day workers who comply with the following requirements will qualify for a standby premium equal to 15 hours of normal time for each 7 days of standby:

a) must be a pre-approved company requirement that the employee does standby.

b) must be on the regular standby roster.

c) must remain within the town limits of Middelburg.

d) must be contactable at all times by cellular phone or telephone and so be available at short notice to report for duty in cases of emergency outside his/her normal working hours.

7. ACTING ALLOWANCE

Acting is a period of training and development for employees. It must therefore form part of the employee’s individual development plan. Acting allowance will only be paid after a minimum period of once off training 5 consecutive days to an employee acting on a higher grade.

The acting allowance is the higher of 10% of the wage package or the difference between the minimum salary of the grade the employee acted in and the employee’s actual wage package.

8. ANNUAL LEAVE BONUS

8.1 Employees who are hourly paid shall receive an annual leave bonus which shall be calculated at the employees’ normal hourly rate multiplied by 200 (two hundred) i.e. for 5 day workers and 220 hours for 6 day (shift workers).

8.2 All hourly paid employees will have an option of splitting the bonus

(Gr 9-13)

The bonus can be either split into two with half the payment made at the end of June of each year and the balance payable at the end of November of each year, or be taken as a full bonus in November. Alternatively the bonus can be paid out on a monthly basis with normal pay.

Employees will at the commencement of each year complete forms with Remuneration, indicating options chosen.

9. ANNUAL LEAVE

Employees are entitled to 3 working weeks leave per annum. 15 working days (Monday to Friday) for 5 day workers and 18 working days (Monday to Saturday) for 6 day workers.

Leave may only be taken by employees after 12 (twelve) months service (the first leave cycle) and each subsequent 12 (twelve) month period thereafter.

It is expected that employees will take three weeks leave per annum, where at least two of these weeks will be consecutive.

Employees must apply for annual leave well in advance. Failure to do so may result in the leave not being approved due to operational requirements.

10. VAL LEAVE

On completion of 4 years of service employees are entitled to a further 5 (five) days voluntary accumulated leave for 5 day workers and 6 (six) days for 6 day workers.

On completion of 9 years of service employees are entitled to a further 5 (five) days voluntary accumulated leave for 5 day workers and 6 (six) days for 6 day workers.

VAL leave may be taken as leave, accumulated to a maximum of 20 days or exchanged for cash at the employees salary or wage rate and paid at the next normal pay date.

11. PREMIUM LEAVE

On completion of 1 (one) year’s service all permanent employees are entitled to 5 (five) days Premium Leave. This leave cannot be accumulated and must be taken or cashed as a unit (no pro rata) within 3 months after the employee’s anniversary date.

12. FAMILY RESPONSIBILITY LEAVE

This leave is for the purpose of attending to urgent and critical family matters. Documentary proof is or may be required and comprises of:

Paternity leave – 3 (three) calendar days per childbirth under normal circumstances with up to 5 (five) days in instances of serious complications.

Compassionate leave – up to 5 (five) days per occurrence in the case of death of direct family members. (Spouse, children, parents-in-law, brothers and sisters).

Special leave – up to 3 (three) days per occurrence in the case of serious misfortune (e.g.: illness/hospitalization of direct family members, court subpoena etc.) granted at management discretion.

13. MATERNITY LEAVE

The maximum period of 6 (six) months maternity leave for the female employees will comprise: 4 months will full pay (pro-rata if the employee has not completed one years service), as per the provisions of the Basic Conditions of Employment Act (1997) and the Unemployment Act (2001), plus 1 (one) months employee leave and 1 (one) months unpaid leave with all benefits covered by Columbus.

The principle of the period of unpaid leave shall apply to any period of between 1 (one) working week and 1 (one) working month.

An employee must commence maternity leave 4 (four) weeks prior to the expected date of birth, unless otherwise agreed, or at an earlier date which a medical practitioner or a midwife certifies as necessary for the employee’s health or that of the unborn child.

Should the employee be booked off for any illnesses that are related to her pregnancy it will be deemed as the date for commencement of maternity leave, particularly during the last month of the third trimester.

Columbus Stainless will not be held liable for any risks incurred should complications arise due to the employee choosing to remain working closer to the date of delivery than the required 4 weeks.

An employee can proceed on her annual leave immediately following maternity leave. Should this option not be exercised, a period of six months must be lapse before annual leave is taken unless work circumstances allow it and authorization is granted by Senior Management.

In the event of an employee resigning while on maternity leave, notice pay will be deducted from any money due to the employee as well as full value of benefits, on a pro rata basis, including wages and salaries covered by the company during the maternity period.

13.1 UNPAID MATERNITY LEAVE

A maximum of 4 (four) months unpaid maternity leave is allowed for female employees that have not completed one year of service prior to the commencement of maternity leave. Columbus Stainless will cover all benefits due and the employee can claim from the Unemployment Insurance Fund for periods of unpaid maternity leave. The same conditions apply with regards to the commencement of maternity leave, as in normal maternity leave.

Employees who do not qualify for maternity leave may not work for at least six weeks after the birth of her child, unless a medical practitioner or midwife certifies that she is fit to do so.

13.2 MISCARRIAGES

An employee who has a miscarriage during the third trimester of pregnancy or who bears a stillborn child is entitled to 6 (six) weeks maternity leave whether or not the employee has commenced maternity leave at the time of the miscarriage or stillbirth.

All other cases of miscarriages before the third trimester will qualify for 2 (two) weeks maternity leave. A medical certificate from a registered medical practitioner must support all the above cases.

13.3 ADOPTION

Where a female employee adopts a baby who is 3 to 24 months old, she will be entitled to 1 (one) month’s paid maternity leave from date of official adoption. In cases where the baby is younger than 2 months on the official date the adoption commences, the adoptive mother is entitled to a maximum of 2 (two) month’s maternity leave.

All the above leave will be subject to the submission of official documentation of proof of adoption.

14. SICK LEAVE

14.1. In the event of illness or injury, the employee shall advise his/her line management that he/she is unable to attend work due to illness or injury as well as the duration that he/she has been booked off sick for. The notification to his/her line management must take place at least 2 hours before the start of the employees shift, unless circumstances beyond the employee’s reasonable control prevented the employee from so notifying line management.

14.2. An employee who is unable to work as a result of illness or injury, shall be granted sick leave at his normal rate of pay, up to a maximum of twenty (20) working days per annum. An employee with less than six months service will be granted pro rata sick leave, but should the services of the employee be terminated prior to the expiry of the six months period, the periods on sick leave will be converted to periods of unpaid leave and recovered from the employee’s final payments.

14.3. Paid sick leave for an employee who has exceeded the allocated days may be extended at the discretion of the employees’ line management with the advice from Human Resources.

14.4. As a general rule, paid sick leave will not be granted to an employee who consults a medical doctor a day or days after he/she was absent from work due to an alleged illness. In addition, the employee concerned may have disciplinary action taken against him.

14.5. An employee must produce a medical certificate signed by a registered medical practitioner in respect of any absence from work due to illness or injury.

15. PUBLIC HOLIDAYS

15.1 An employee who does not work on a paid public holiday, (as specified in below), shall be paid his normal wage.

15.2 For the purpose of this clause, a paid public holiday shall mean New Year’s Day, Human Rights Day, Good Friday, Family Day, Freedom Day, Workers Day, Youth Day, National Women’s Day, Heritage Day, Day of Reconciliation, Christmas Day and Day of Goodwill.

15.3. An employee who is obliged to work on a paid public holiday shall be paid at the rate set out in schedule 1.

16. FATIGUE TIME

16.1 Paid rest periods will be granted to employees under the following conditions:

16.1.1 Any call-outs occurring between 23:00 and 05:00 totaling 4 hours or more will result in the next shift being treated as paid fatigue shift.

16.1.2 Any call outs occurring between 23:00 and 05:00 totaling less than 4 hours will result in the next shift starting time being moved ahead by an equal number of hours.

16.1.3 Call outs or overtime completed by 23:00 shall be paid at the agreed rates but not compensated for in time off.

16.1.4 Any call outs/overtime totaling 7 hours or more will result in the next shift being treated as fatigue shift.

16.1.5 All the above arrangements apply provided a full shift has been worked prior to the callout/overtime period and the next shift is a normal shift (i.e. not a day off).

16.1.6 Where callout/overtime is worked on weekends or paid public holidays, the rules will apply as if a full shift had been completed. (Overtime worked on Fridays and Saturdays by 5 day workers will be paid at 2 X normal rate.)

17. SHORT TIME

17.1 Where there is a shortage of work or materials or circumstances arise which are beyond the control of Columbus and which prevent normal operations, Columbus reserves the right to require employees to work less than their normal working hours.

17.2 Columbus shall give employees 2 (two) working days notice of its intention to work short time and shall, as far as possible, spread the available work evenly amongst the employees affected.

17.3 On any day where Columbus required an employee to attend work for the purposes of ascertaining whether he is required to work, the employee shall work for a minimum of 4 (four) hours or receive pay in lieu thereof.

17.4 In the event that Columbus does not require an employee to attend work, he shall be given one working days notice to that effect.

17.5 Other than in the above circumstances, Columbus shall only remunerate employees for time actually worked.

17.6 Any periods which have not been worked in terms of this clause or worked short time shall count as service for all purposes.

18. ISSUE OF CERTIFICATE

Columbus shall provide each employee upon his termination of employment with a certificate stating his name, the period for which he worked for Columbus, the nature of his employment and his wage rate.

19. EMPLOYMENT OF PERSONS UNDER 16

Columbus shall not employ any person under the age of 16 (sixteen) years.

20. HOUSING ALLOWANCE

All employees in (Grades 9-13), qualify for a fixed housing allowance in accordance with the rules therefore. The allowance values will increase with the May CPI/CPIX figures for each year subsequent to 2008.

Housing for 2008 will increase by 50% across all grades (9-13) resulting to the following new values:

Grade 9: from R2144 to R3216 pm

Grade 10: from R1906 to R2859 pm

Grade11: from R1702 toR2553 pm

Grade12: from R1426 to R2139 pm

Grade 13: from R1225 toR18397 pm

21. TRAINING

Columbus is committed to encouraging the development of all its employees through education and training in order to maximize their potential. The needs of

business and the availability of resources must also be considered when training decisions are made

22. CONFLICT OF INTEREST

Employees shall not take up any other employment whilst in the employ of Columbus without Columbus’ prior written consent. Employees shall not have any interests nor hold any office or directorship in any business or concern which is or may be in conflict with the interests of COLUMBUS.

23. TRAVEL

Where Columbus requires an employee to travel away from its’ premises on company business, the employee shall be reimbursed for all reasonable travel and

accommodation expenses.

24.TRANSFORMATION AND BBBEE

- Parties to this agreement agrees to Broad Based Black Economic Empowerment which entails:

* Employment Equity

* Skills Development

* Affirmative/preferential procurement

* Enterprise development

* Social development

- Participative structures have been set up as follows:

* EE Action Committee which is chaired by the CEO

* Departmental EE Forums chaired by the Business Unit Managers

* Skills Forum

* Gender Forum.

- Management agrees to measure progress on the above through balanced scorecard.

25. VASBYT ALLOWANCE

The current Long Service Awards will be improved and replaced by the new Vasbyt Allowance which will pay annually on the anniversary as follows:

1-5 years: R1000

6-10 years: R2000

11-15 years: R3000

16-20 years: R4000

21-25 years: R5000

26-30 years: R6000

31-35 years: R7000

36-40 years: R8000

Should you leave before your anniversary for any reason other than normal retirement or retrenchment you will forfeit the allowance for that year.

Signed for and on behalf of the parties:

___________________________________________

COLUMBUSSTAINLESS(PTY) LTDDATE

_______________________________________________

(Duly authorized)

NATIONAL UNION OF METALWORKERSDATE

OF SOUTH AFRICA

Witnesses:

_______________________________________________

_______________________________________________

____________________________________________

SOLIDARITY DATE

_____________________________________________

UNITED ASSOCIATION OF SOUTHDATE

AFRICA

AS WITNESS:

____________________________________________

IR MANAGERDATE

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