​​Industry wage negotiations Q&A

How do industry wage negotiations come about?

A year prior to the expiry of a current agreement, parties to the National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) come together to negotiate a new agreement. The current agreement expires in February 2027. Parties start by drawing up a Negotiation Protocol which seeks to guide parties on what they need to do and expect during the negotiation process.

How do we get to a published agreement by the Minister of Labour and what role does the Council play in this process?

1. There are seven parties to Council involved in the negotiation process, namely the Road Freight Association (RFA), the National Employers’ Association of South Africa (NEASA), and Consolidated Employers Organisation (CEO) as well as four unions – the South African Transport and Allied Workers’ Union (SATAWU), the Motor Transport Workers’ Union (MTWU), Tirisano Transport and Services Workers Union (TASWU), and National Union of Metalwokers of South Africa (NUMSA).
2. Prior to negotiations, the parties to the Council develop their “wish lists” regarding the contents of the agreement and the conditions of employment it stipulates.
3. The Council administration staff then schedules meetings in terms of Council’s constitution. The constitution states that there should be three rounds of negotiations held.
4. The Council also organises a senior commissioner from CCMA to be the facilitator of the negotiations.
5. The Council’s administration staff don’t attend these meetings, unless they are called in to engage in the process.
6. During the negotiations, the parties to the Council decides how long the agreement will apply for. The Council administration also puts together a bundle of documents, such as useful statistics, for use in the negotiations.
7. During the first meeting, the parties to the Council exchange their wish lists. If they agree on each other’s wishes, they then pass on this information to the Council and it draws up a signed Agreement.
8. Using the signed Agreement, the Council drafts a schedule (Collective Agreement).
9. The schedule is circulated amongst the parties to Council to ensure that they are satisfied with it.
10. The schedule is then signed by the Chairperson and Deputy Chairperson of the Board as well as the National Secretary of the NBCRFLI.
11. It is now submitted to the Department of Labour so that they can check that the schedule is in line with the Basic Conditions of the Employment Act and other applicable legislation.
12. The Minister of Labour may agree to the time period for which the Agreement will stand, or she may change it.
13. The Agreement is finally published in the Government Gazette and becomes law within the transport industry. The Agreement is also binding on non-parties, if extended by the Minister, so that everyone is covered within the industry.

Even though Agreements have changed over the years, the changes have not been drastic ones and have mostly been about wages and allowances.

What is expected of both parties during the negotiation process?

• To work as partners to create an environment for prosperity and success in the Road Freight and Logistics Industry.
• To drive decisions that ensures the future of the NBCRFLI.
• To deliver effective and efficient representation and service to those they serve.
• To reach a settlement that serves social justice, labour peace and economic growth.
• To combat conflict.
• To place the maximum premium on time and its management.
• To communicate meaningfully, with every option to be explored in reaching settlement without resorting to industrial action.
• To recognize and utilize this negotiation process as an opportunity to understand the needs of both sides and to build relationships so that representatives walk away together, once settlement is achieved, with a strong bond, to ensure the agreement is adhered to and “brought to life”.
• To ensure that the wage negotiations in the coming year are conducted in accordance with this negotiation protocol.
• To abide by the settlement reached.
• To create a “model industry”.

Steps of the negotiation process

In terms of the Negotiations Protocol, the parties will follow the process:

1. Council will provide them with information requested in the Protocol.
2. A facilitated workshop will then follow.
3. Parties will go to their constituencies to seek a mandate.
4. Needs are then exchanged.
5. Negotiations starts.
6. In the event of a deadlock, disputes are facilitated by an accredited commissioner.
7. If the dispute remains unresolved Section 64 of the LRA may be invoked.

How do involved parties reach a fair negotiation decision?

The following general needs that have been identified in prior engagements between the parties are taken into account:

• Essential Needs for both Parties
  • Economic and job stability
  • A profitable, competitive enterprise
  • Industrial peace

• Employer Needs
  • A stable and efficient workplace
  • Competitive labour cost
  • Productivity
  • Industrial peace
  • Compliance with labour legislation in the RSA
  • The ability to adapt rapidly to change (flexibility)
  • To be perceived as a just employer

• Labour Needs
  • Justice and protection in the workplace
  • ​Security of employment
  • Prevention of exploitation
  • A living wage
  • Recognition of individual/family aspirations and commitments
  • Recognition for contribution/productivity
  • A power structure to recognize these needs

How long does the negotiation process usually take?

The negotiations themselves, excluding the submission of the agreement to the Department of Labour for promulgation, takes about four months.

What, generally, is the outcome of this process?

A signed agreement promulgated in the Government Gazette and enforceable by the Council.

How does this process benefit the Industry?

Once an agreement is promulgated, everyone in the Industry knows what to expect and what is expected of them. This sense of certainty amongst all parties helps to promote stability within the Industry.

​