The new agreement covers a 2-year period and will come into force once published in the Government Gazette. It applies to every company operating in the construction sector.
Once enforceable to the construction industry at large, all companies must increase the minimum wages by 10% for the first year and then 10% for the subsequent year. The agreement covers only minimum wages and employment conditions and do not apply to across-the-board pay increases.
Bärbel Kirchner, consulting general manager of the CIF further clarified: “This means that the minimum wage increases as per the new collective agreement between the CIF and MANWU, are not applicable with immediate effect, only then when the collective agreement becomes law and is enforceable to the industry at large.
The minimum wage increases will also only become effective as from the date of promulgation. Naturally, employers are not restricted and if they wish, they can adjust the minimum wages immediately. It is totally within their discretion”.
Changes also include an adjustment of the Service Allowance from 144 hours to 150 hours, once the collective agreement is promulgated.
Thus, every worker will be paid equal to 150 hours of his/her wage, which will be part of the remuneration in December. This allowance will be calculated pro-rata for each fully worked month that the employee was in service during that specific year.
The pending increase is higher than previous years, which was 9% for 2012/2013 and 9.5% for 2013/2014.
Until the new agreement is promulgated, Government Gazette No 5372 dated 24 December 2013 remains enforceable to every construction company.