The BIBC Main Agreement Has Lapsed

BUILDING INDUSTRY
MAIN AGREEMENT HAS LAPSED

Dear NEASA Member

The main agreement of the Building Industry Bargaining Council – Cape of Good Hope (BIBC) lapsed on 31 October 2016, and the new three-year agreement has not yet been extended to non-parties (non-Master Builders’ Association (MBA) employers).

Therefore, from 1 November 2016, if your business is not a member of the MBA, the BIBC main agreement does not apply, and minimum conditions of employment are determined by the Basic Conditions of Employment Act (BCEA). This means, inter alia:

• If you and/or your employees are not registered with the BIBC, you are not obliged to register.

• BIBC agents may only perform inspections regarding compliance of the main agreement for the period up until 31 October 2016. Compliance orders for the aforementioned period can still be issued and compliance arbitrations for this period can still take place. 

• You MAY NOT deduct any BIBC monies from employee wages without their permission, nor submit any returns or pay over any monies to the BIBC for the period from 1 November 2016 until a new agreement has been extended. A new agreement cannot be retrospective, however it is important that you make provision for topping-up your employees’ leave come December 2017, and that you pay employees when they are on sick leave.

• There are no minimum wages. Although you are now free to negotiate wages and benefits with your employees, we recommend that you do not reduce existing employees’ wages and benefits.

• Layoff is not provided for in the BCEA, therefore if you institute a layoff and your contracts of employment do not provide for it, your employees can refer an unfair labour practice dispute.

• In terms of the BCEA, if an employee with more than 12 months’ continuous service resigns or is dismissed, the required notice period is 4 weeks. This excludes summary dismissal as a sanction following disciplinary procedures.

Please note that the points raised above are valid until a new agreement is extended by the Minister of Labour by publication in the Government Gazette, which we believe will take place early next year.

NEASA members are welcome to contact out Hotline should they have any questions at 08601 NEASA (63272) or legalhotline@neasa.co.za. Please have your NEASA membership number available.

If you are not a NEASA member and would like to know more about our services, please send an email to capetown@neasa.co.za. One of our legal advisors will contact you within 1 working day.

Kind regards

Jaco Swart
National Collective Bargaining Co-ordinator