In the wake of the devastation caused by Covid-19, restaurants, fast food- and related outlets across the country are being dealt yet another painful blow. On 18 January 2021, the Minister of Employment and Labour extended the main agreement of a newly-formed Bargaining Council for the fast food, restaurant, catering and allied trades to all non-parties. The Free State, which was not previously included in this Bargaining Council, is now included. Some of the prominent aspects of the Bargaining Council include but are not limited to:
Wages:
Different wages are prescribed for different categories of employees, all of which are well above the national minimum wage. The lowest wage – waiters and general assistants being R22.25 per hour. Wages will be increased on 1 May 2021 by CPI + 1%. Other costs payable by the employer:
•Council levy – R5.00 per month per employee. The same deduction applies to the employee;
•Dispute levy – R3.00 per month per employee. The same applies to the employee;
•Funeral benefit – R12.50 per month per employee. The same applies to the employee;
•Provident fund – 5 per cent of employees’ monthly wages. The same applies to the employee; •Uniform – R17.50 per week payable to each employee if the employees are required to wash their uniform;
•Annual bonus – Every December, a mandatory bonus of one week’s wages is payable to employees employed for at least 12 months. Two week’s wages are payable to employees employed for at least 24 consecutive months.
•General deduction of R25.00 per establishment to the Council for services.
Meanwhile, the extension of the main agreement is being challenged by well-known associations that represent employers in the hospitality industry. It is their view that the extension was ill-conceived. They are preparing to lodge an interdict, but have been in communi-cation with the Minister’s office to try and resolve the matter amicably.
This week, Dynamic Labour Solutions’ office in Parys said they would keep hospitality sector employers informed of any developments.
Their advice was that, due to the severe impact of the exten- sion of the Bargaining Council’s main agreement on non-parties, affected employers should consider holding back registration with the Bargaining Council, pending further developments. They have also invited employers in the sector who require additional information to contact 083 308 1227.
All the restaurant owners to whom the Gazette spoke, said the restaurant and hospitality industry had been hard hit since lockdown. It was still feeling the devasting effect of the ban on alcohol sales, the curfew and limi- tation of people on restaurant premises. In addition, restaurants have to deal with an alarming, almost daily rise in food prices, load shedding and frequent electrical outages that cause major challenges and damage to electrical equipment.
They have extra expenses in adhering to Covid regulations and fewer customers to ensure social distancing.This all results in more expenses and less income; more job losses and fewer opportunities for restaurants to keep their doors open.
Therefore, the extension of the main agreement will be the final nail in the industry’s coffin.
