Building industry implements new labour category
THE BUILDING Industry Bargaining Council ( BIBC) has announced the new category Labourer L2, which automatically applies to labourers after receiving 122 daily employee benefit fund credits.
Arnold Williams, secretary for the Building Industry Bargaining Council (Cape of Good Hope), says: “Once 122 daily benefits have been credited to employees’ BIBC record, or after employees have been in continuous employment for six months, they are automatically upgraded to Labourer L2 level.”
The category was created to introduce a level of employment that includes the benefit of a retirement fund at a higher rate of pay than the old entry level Labourer category, which is now referred to as Labourer L1, but is lower than the General Worker category.
“Previously labourers would be upgraded to general worker after a year in the industry, but the wage gap was quite significant and this placed strain on employers’ wage bills. The labourer category did not receive any contribution to retirement funds, whereas general workers did. L2 has been introduced to narrow the wage gap between the entry level wage and the next category wage, while ensuring that labourers who fall within the new category still receive the benefit of retirement funds.”
The time frame for upgrading has been reduced to six months. A phased-in approach will be used to implement the change. It is hoped that this will encourage increased employment opportunities and ease the wage burden for employers.
“Should employees not have the required benefits to be upgraded, due to non-compliance by their employers, the six months rule will be applied and employees will be registered as Labourer L2. To implement this upgrade employees must prove they have had six months’ continuous employment in the building industry. The cleaner category has fallen away and employees receiving cleaner benefits will now receive labourer L2 wages and benefits.
“Upgrading from labourer L2 to general worker is no longer automatic and employers will upgrade employees to general worker once they have reached acceptable skill levels.”
● For further information see www. bibc. co. za or call 021 950 7400.