National Bargaining Council For The Clothing Manufacturing Industry Collective Agreement

The Industrial Relations Act (LRA) provides for the creation of negotiating councils for each of the most important sectors in South Africa. Bargaining councils are made up of representatives of major unions and employer groups in each sector, whose main objective is to reach consensus on the conditions of their specific sectors. The terms agreed by the councils are contained in a collective or principal contract. The main agreement allows each sector to develop appropriate conditions for this sector, through a consensus between work and employers. The LRA contains certain guidelines and provisions for the establishment of a bargaining council. Unions and employers on the Council should represent the majority of workers and employers in this sector. The Bargaining Board indicated that the agreement was forwarded to the Ministry of Employment and Labour to extend it to non-parties within the industry. We will keep you informed of developments. The fund is a defined contribution fund, i.e.

the amount of contributions (members and employers) for the fund is fixed from the outset and is changed from time to time only by the agreement between the participating employers and the Union. The National Clothing Industry Bargaining Council (“negotiation council”) has entered into a collective agreement between the relevant stakeholders (“agreement”). It was announced that the agreement, which has not yet been concluded, will guarantee the full remuneration of 80,000 workers during and after the national blockade for six weeks. Wages are paid by employer funds and unemployment insurance benefits (UFUs). The Cape Clothing Industry Provident Fund (CCIPF) was founded on March 12, 1954. It is part of collective bargaining under the aegis of the National Clothing Industry Bargaining Council. The Fund`s priority is to provide good retirement benefits to members who reach retirement age. Additional benefits are provided to assist dependants in the event of the member`s death and for the member who is permanently disabled as a result of an illness or accident.

The combined contribution, net of the cost of the Fund`s risk benefits and operating costs, is invested on behalf of members to collect a value that is ultimately paid to members in the form of an old-age pension or other benefit if it is due before a member arrives.

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