SCHEDULES THE MOTOR INDUSTRY

WAGE SCHEDULES THE MOTOR INDUSTRY MAIN AGREEMENT EFFECTIVE DATE 1 SEPTEMBER 2015

UNDERSTANDING THE APPLICATION OF WAGES IN THE MOTOR INDUSTRY DIVISIONS OF THE MOTOR INDUSTRY DIVISION A Division A of the Main Agreement covers generic Conditions of Employment which are applicable to the motor industry other than those conditions which are specifically applicable to office, sales and clerical employees. Division A also contains definitions and grades of the various employees. DIVISION B Division B covers all wages and conditions of employment which are applicable to office, stores, sales and clerical employees. DIVISION C Division C contains minimum wages for all employees excluding office, stores, sales and clerical employees. DIVISION C CHAPTERS Division C is divided into five chapters: Chapter 1 The entire motor industry, other than those specifically covered in Chapters 2, 3, 4 and 5; Chapter 2 Vehicle body builders; Chapter 3 Component manufacturers; Chapter 4 Automotive engineering establishments; Chapter 5 Reconditioning establishments. DIVISION D Division D covers specific sectoral issues: Please see definition of the sectors below: DIVISION D - SECTORS Sector 1 Manufacturing (Chapter III); Vehicle body builders (Chapter II); Sector 2 Remanufacturing; Sector 3 Engine reconditioning establishments; Sector 4 Workshops, motorcycle dealers, body repairers, tyre dealers etc; Sector 5 Fuel dealers; Sector 6 Dealerships; Sector 7 Parts and equipment dealers. 2

THRESHOLD Only the following clauses in the Main Agreement shall apply to employees whose weekly or monthly remuneration, excluding commission on sales, is more than the rate of R172 000 per annum (R157 464 for the purpose of wage increase in Sector 1/Chapter III) Administrative Agreement Clause 5 Deduction of Earnings; Clause 13 Employees Representatives on the Council; Clause 14 Prohibition of Cession Benefits. Main Agreement Division A Clause 2 Definitions; Clause 3 Termination of Service; Clause 4 Outwork; Clause 5 Piece Work and Commission Work; Clause 8 Travelling Allowance; Clause 11 Sick Leave; Clause 13 Retrenchment Pay; Clause 15 Desertion; Clause 16 Damage to Vehicle or loss of Property or Assets; Clause 17 Public Holiday; Clause 26 Annual Leave and Accrued Leave Pay; Clause 31 Maternity Leave; Clause 33 Payment of Earnings; Clause 35 Certificate of Service. GRADES OF EMPLOYEES EXCLUDING DIVISION B EMPLOYEES Please see job categories on page 4 of this booklet in order to categorise your employees into various grades. EXPLANATORY NOTES ABOUT WAGE INCREASES The new wage schedule has been circulated to RMI members. Members are cautioned to treat attempts by third parties to over-simplify the wage agreement with the utmost caution as very pertinent omissions and some incorrect interpretations may be conveyed, which could confuse members and/or cost members. Members wanting to obtain further clarity regarding the application and interpretation of the wage or any other industry agreements, are encouraged to contact local RMI regional offices, where highly skilled legal teams are deployed, offering trade- specific advice and assistance in the application of these wage regulatory measures. You will find the contact details of the RMI regional offices on the back page of the booklet. Members are requested to note the following specific aspects of wage agreements that deserve careful attention: What is the difference between actual and guaranteed wage increases? Actual wage increase applies to Sector 1 (Chapter III only) of the industry i.e. component manufacturers, and implies a percentage increase on the wage that the employee earns, irrespective of whether that employee earns the minimum wage or not. Guaranteed increase on the other hand, is calculated by applying the percentage increase to the old minimum wage, converting that calculation to a cash value, and applying those cash values to the wage that a specific employee earns. These cash values, calculated for each grade of employment, are the increases applicable to the entire industry except Sector 6 and Chapter III and can be obtained by looking at the guaranteed wage increase schedule. The intention of guaranteed increases is not to penalise those members who pay their employees more than the minimum wage, which will happen if the percentages are applied across the board. Who is legally entitled to a wage increase? Only those employees who earn wages/salaries (gross before overtime allowance and bonuses) below the new threshold of R172 000 per year (R157 464 for the purpose of wage increases in Sector 1/Chapter III) are legally entitled to the increase specified in the Wage Table found on pages 5, 6 and 7 of the booklet. Wage increases to those employees earning above the specified threshold are at the discretion of management. May I offset an increase already given? A member, who has granted increases over and above the prescribed increase during the preceding twelve months, may offset those increases against the increase set out in the schedule below, however no wage increases may be offset on more than one occasion. What are the additional holiday bonus provisions? All employees, except journeymen and apprentices, earing below the income threshold specified above, are entitled to an annual bonus equal to two weeks basic wages or a maximum of R4 496.40, whichever amount is lesser. Journeymen and apprentices receive 3

their Additional Holiday Pay annually from MIBCO and the member is therefore not obliged to pay it to these employees directly (these amounts are paid monthly to MIBCO through the returns-system.) What are the standby and call-out allowance provisions? Any member may require a journeyman or administrative/ sales employee to standby on any Saturday and/or Sunday, however, such an employee shall be entitled to notice, in writing, of not less than one week to that effect. Whenever an employee is required to stand by, he or she shall be paid, irrespective of whether he or she is required to work while on standby, a standby allowance of not less than R80.52 in respect of each day on which he or she is required to so standby. Members may call out a journeyman or an administrative/sales employee to work prior to his or her normal starting time or after normal finishing time on any day of the week. However, a call-out allowance of R86.27 shall be paid in each case where such an employee is called out. A call-out allowance may not be paid to an employee in respect of the first call out whilst such employee is paid a standby allowance for that day. MINIMUM WAGES Minimum wages mean that an employer may not pay less than that which is prescribed for the particular grade or category of employee, unless the employer has obtained an exception from MIBCO. Please note that Dealerships (Sector 6) employees have higher minimum wages than the rest of the industry. GUARANTEED MONETARY INCREASES Guaranteed monetary increases the minimum monetary value of increases to be granted to employees who are earning above the minimum prescribed increases at the time when the Agreement becomes effective. Guaranteed monetary increases are not applicable in Dealerships (Sector 6) and Component Manufacturers (Chapter III). ACTUAL INCREASES CHAPTER III Component manufacturing establishments (Chapter III) grant actual percentage increases to all employees who are at the threshold of R157 464 per annum or less. DEFINITION OF SECTORS AND GRADES IN DIVISION C Sector 1 Manufacturing establishments, i.e. vehicle body builders, trailers and caravan manufacturers and warranty repairs, vehicle components and accessories; fibre glass component manufactures, repairs and sales. Sector 2 Re-manufacturing (production) establishments, i.e. component re-manufacturers; brake, clutch and radiator remanufacturers; drive-train and steering re-manufacturers. Sector 3 Re-conditioning establishments, i.e. automotive engineers; fuel- injection/diesel pump; gearbox/transmission; turbochargers and spring smiths. Sector 4 Service and repair establishments, i.e. motorcycle sales and repairs, batteries, tyre sales, repairs and wheel alignment, tyre re-treaders, exhaust, tow-bar and shock absorber fitters; radio, alarm and immobiliser fitters; sunroof fitters; air-conditioning; body repairers, upholsterers and motor trimmers; auto electrical repairers; auto-valet and steam cleaners; prop-shaft and cv-joint repairers; motor plastic component repairers, glass fitters; carburettor sales and repairs; drive-train fitters and repairers; steering fitters and repairers; motor vehicle, bus, truck and tractor repairers. Sector 5 Fuel dealers, service stations and related establishments. Sector 6 Dealer sales and distribution establishments, i.e. used motor vehicle, bus, truck and tractor sales repairers; franchised motor vehicle bus, truck, tractors and parts sales and repairers; caravan sales repairers; agricultural sales and repairs. Sector 7 Automotive parts, accessories, equipment and tools establishments, i.e. motor parts, accessories, equipment and tools, auto-breakers and used parts dealer establishments. JOB CATERGORIES This table enables you to categorise your employees into various grades and divisions. Simply look up the job description and establish into which grade that falls. Then use the wage booklet on these pages to establish the prescribed minimum wage according to the different grades. Grade 1 Char, forecourt attendant. Grade 2 Driver of motorcycle or scooter, general operative, general worker, Grade D employee; vulcaniser s operative without wheel balancing. Grade 3 Battery repairer, chopper out; driver of motor vehicles with gross mass of up to 3 500kg including forklifts 4

and tractors; new motor vehicle, motor cycle and tricycle assembler; operative gearbox dismantler; operative Grade 1; operative Grade C, scooter worker. Grade 4 Cutter; operative exhaust fitter; operative Grade 2; operative Grade 3; operative Grade AR; operative Grade B, operative Grade BR, operative sunroof fitter; operative upholsterer; operative wheel balancer, pattern cutter maker; supervisor Grade 3l vulcaniser s operative with wheel balancing. Grade 5 Armature winder; auto electrician s assistant; body shop assistant; brake drum skimmer; clutch cover assembly setter; diesel pump room assistant; driver of motor vehicle with a gross mass over 3 500kg; motor cycle mechanic s assistant, operative air-conditioner fitter; operative Grade 4; operative Grade 5, operative Grade BV; operative Grade CR; operative Grade CV; operative Grade DV; operative radio/alarm fitter; operative supervisor quality controller; radiator repairer; repair shop assistant; seaming machinist; supervisor; supervisor Grade 4. Grade 6 Clutch and brake operative; machine setter; operative Grade A; senior quality controller; supervisor Grade 5 wheel alignment worker. Grade 7 B/A journeyman, exempted journeyman; operative engine assembler. Grade 8 Journeyman, service supply salesman. Class of employee a) Office, stores sales and DIVISION B & D - CLAUSE 3 (WAGES) - ALL CHAPTERS & SECTORS WAGE SCHEDULE : MINIMUM WAGES - 1 SEPTEMBER 2015 SECTORS 1,2,3,4,5 & 7 SECTOR 6 ONLY SECTORS 1(ch 2),2,3,4,5,& 7 Minimum Wages Minimum Wages GUARANTEED INCREASES Area A Other Areas Area A Other Areas PW PM PW PM PW PM PW PM PW PM R R R R R R R R R R Clerical employeeduring 1 st year of experience 1016,54 4405.01 1016,54 4405,01 1037,49 4495,79 1037,49 4495,79 75,30 326,30 during 2 st year of experience 1159,89 5026,19 1159,89 5026,19 1181,94 5121,74 1181,94 5121,74 85,92 372,32 during 3 rd year of experience 1335,83 5788,60 1335,83 5788,60 1362,25 5903,08 1360,44 5895,24 98,95 428,78 1550,88 6720,48 1550,88 6720,48 1579,06 6842,59 1557,33 6748,43 114,88 497,81 (b) Motor vehicle sales person- During 1 st year of experience 1226,51 5314,88 1226,51 5314,88 1226,51 5314,88 1226,51 5314,88 90,85 393,68 1581,35 6852,52 1574,50 6822,83 1581,57 6853,47 1574,56 6823,09 117,14 507,61 (c) Bookkeeper 1993,95 8640,45 1992,20 8632,87 2011,22 8715,29 2002,24 8676,37 147,70 640,03 (d) Accountant 3392,04 14698,84 3363,04 14573,17 3436,89 14893,19 3388,19 14682,16 251,26 1088,79 (e) Parts salesperson - During 1 st year of experience 1278.42 5539,82 1278,42 5539,82 94,70 410,37 Class of employee (f) Traveller - 1570.42 6805,15 1569,20 6799,87 1570,42 6805,15 1563,14 6773,61 116,33 504,10 All Areas All Areas All Areas PW PM PW PM PW PM during 1st year of experience 1283.69 95,09 412,06 1570,42 6805,15 1570,42 6805,15 116,33 504,10 (g) Supply sales person - during 1 st year of experience 95,09 412,06 during 2 st year of experience 1470,41 6371,78 1470,73 6373,16 108,92 471,99 during 3 rd year of experience 1648,26 7142,46 1648,26 7142,46 122,09 529,06 1768,89 7665,19 1768,89 7665,19 131,03 567,80 (h) Part-time employees * * * * * One eleventh of the minimum weekly wage as prescribed for clerical employees in (a) hereof, for ordinary time worked on each day on any one week, or one forty-fifth of such prescribed minimum weekly wage for each hour or part of an hour of ordinary time worked in any one week, whichever is the greater. 5

Class of employee Grade 1 Forecourt Attendant Parking Garage Attendant Cashier Char (Sector 5)* Char Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Class of employee Grade 7 Grade 8 Watchman APPRENTICES 3 YEAR TRADE First year DIVISION C, CHAPTER 1 - CLAUSE 3 - WAGES WAGE SCHEDULE : MINIMUM WAGES - 1 SEPTEMBER 2015 CHAPTER 1 CHAPTER 1 CHAPTER 1 SECTOR 4,5 & 7 ONLY SECTOR 6 ONLY Guaranteed Increases* Area A Other Areas Area A Other Areas All Areas PW PH PW PH PW PH PW PH PW PH R R R R R R R R R R 1023,75 22,75 1023,75 614,25 13,65 614,25 1123,20 24,96 1090,35 837,00 18,60 837,00 801,90 801,90 1076,85 23,93 1050,30 1273,05 1273,05 All Areas 22,75 13,65 24,23 18,60 23,34 839,70 11 1208,70 1319,40 1463,40 1743,30 18,66 25,02 26,86 29,32 32,52 38,74 834,30 1080,00 1208,70 1319,40 1463,40 1743,30 All Areas. 84,60 1,88 45,45 1,01 59,40 1,32 67,95 1,51 18,54 79,65 1,77 24,00 92,70 2,06 26,86 86,40 1,92 29,32 94,50 2,10 32,52 105,30 2,34 38,74 126,45 2,81 All Areas PW PH PW PH PW PH 2428,20 53,96 no hourly rate 2149,20 47,76 157,50 3,50 2455,20 54,56 180,00 4,00 1016,14 no hourly rate 75,67 no hourly rate All Areas All Areas * Not Applicable to ALL CHAPTER LEARNERS ALL CHAPTER Sector 6 Establishments NQF LEARNERSHIPS CBMT PW PH PW PH PW PH Level 1 1164,15 25,87 Second year Level 2 1339,20 29,76 1453,50 32,30 Third year 1860,65 Level 3 1747,35 38,83 Level 4 2034,00 45,20 4 YEAR TRADE *Guaranteed increases as prescribed for Chars in Sector 5 only. First year Second year 1339,20 29,76 Sector 5 Wages are subject to the profit margin adjustment to be determined by the Department of Minerals and Energy Third year Fourth year 6

Class of employee DIVISION C, CHAPTER II - V : CLAUSE 3 - WAGES WAGE SCHEDULE : MINIMUM WAGES - 1 SEPTEMBER 2015 CHAPTER 2 CHAPTER 3* CHAPTER 4 CHAPTER 5 APPRENTICES/LEARNERS SECTOR 1 SECTOR 1 SECTOR 3 SECTOR 2 ALL CHAPTERS All Areas All Areas Area A Other Areas All Areas All Areas PW PH PW PH PW PH PW PH PW PH PW PH R R R R R R R R R R 3 Year Trade Grade 1 801,90 833,40 18,52 801,90 801,90 801,90 First year Grade 2 1076,85 23,93 1097,55 24,39 1076,85 23,93 1076,85 23,93 1076,85 23,93 Second year Grade 3 1187,10 26,38 Third year Grade 4 1296,45 28,81 1273,05 1273,05 1273,05 4 Year Trade Grade 5 1446,30 32,14 First year Grade 6 1735,20 38,56 Second year 1339,20 29,76 Class of employee All Areas All Areas All Areas All Areas PW PH PW PH PW PH PW PH Third year Fourth year Grade 7 NQF Learnership Grade 8 2428,20 53,96 2472,75 54,95 2428,20 53,96 2428,20 53,96 Level 1 Level 2 1339,20 29,76 Watchman no hourly no hourly no hourly no hourly Level 3 rate rate rate rate Level 4 CHAPTER 3 Provisions for Chapter 4 Operatives GUARANTEED INCREASE CBMT MINIMUM PW PH PW PH Level 1 1164,15 25,87 MEASURING INSTRUMENT BONUS 1. Op. Engine Assembler 1st 18 Months Experience 105,30 2,34 Level 2 Level 3 1453,50 1747,35 32,30 38,83 PW Thereafter 157,50 3,50 Level 4 2034,00 45,20 Vernier/micrometer Tape/rule/ square/sets 13,80 9,20 2. Operative Grade A 1st 12 Months Experience 105,30 2,34 * 8% Increase on actual earnings with effect from 1 September 2015 for Chapter 3 Establishments Thereafter 126,45 2,81 3. Operative Grade B 1st 6 Months Experience 86,40 1,92 Thereafter 1273,05 94,50 2,10 7

For further information please contact your local RMI regional office Johannesburg Tel: (011) 886 6300 Regional Manager: Jeff Molefe IR specialist: Marti van Renssen & Henry Galloway Durban Tel: (031) 266 7031 Regional Manager: Jan Schoeman IR specialist: Julian Pillay Cape Town Tel: (021) 939 9440 Regional Manager: Joy Oldale IR specialist: Brent Barichievy IR specialist: Johanita Olivier Pretoria Tel: (012) 348 9311 Regional Manager: Pieter Niemand IR specialist: Marti van Renssen Bloemfontein Tel: (051) 430 3294 Regional Manager: Louis van Huyssteen IR specialist: Henry Galloway Port Elizabeth Tel: (041) 364 0070 Regional Manager: Erwin Stroebel IR specialist: Eckhardt Oelofse