Since the expiry of the MIBCO Administrative Agreement and the Provident Fund agreement on 31 January 2015 and 31 March 2015, respectively, the Motor Industry Staff Association has received a number of queries from members as to how this impacts on their employment relationship. MISA’s Hermann Köstens explains.

Although the Admin Agreement governed the funding of MIBCO through council levies, which are deducted by your employer and then paid over to MIBCO, it also provided MIBCO with the authority to collect trade union subscriptions, which MIBCO then paid over to the respective unions. The Provident Fund Agreements mandated MIBCO to collect contributions on behalf of the respective provident funds, namely AWPF and MIPF, on behalf of these funds.

What does this mean for you?
The employer now has the discretion whether they wish to continue to pay union fees deducted from employees who are MISA members over to MIBCO or whether they prefer to pay the union subscriptions deducted directly to MISA, as the relevant trade union.

Secondly, in respect of provident fund deductions, employers are still required to pay the contributions.

Thirdly, the MIBCO council levies are for the operations of MIBCO and so far most employers chose the responsible route and continued to pay over such levies to MIBCO. Should they, however, stop payment, they are also not allowed to deduct the council levy of R 2.50 per week from employees’ salaries.

If your employer is deducting this contribution from your salary, please be vigilant in ensuring that they are paid over to MIBCO. All participants and role players within our industry have a duty to ensure the sustainability of MIBCO.

Please note
As a MISA member it is your responsibility to ensure that your subscription fees are paid up to date.

You will forfeit all financial benefits should your MISA subscription not be in good standing, albeit it due to the fact that your employer stopped deducting union fees from your salary.

If your employer claims that you are no longer entitled to benefits, or simply stopped deducting due to the expiration of the above-mentioned agreements, kindly contact the MISA legal department for assistance.

Hermann Köstens
CEO (Strategy and Development)

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