The MIBCO Collective Agreement 2020: What You Need to Know

The Motor Industry Bargaining Council (MIBCO) is responsible for negotiating the terms and conditions of employment in the South African automotive industry. Every two years, MIBCO negotiates a new collective agreement with the National Union of Metalworkers of South Africa (NUMSA) and other trade unions representing workers in the industry.

The MIBCO Collective Agreement 2020, which came into effect on 1 September 2020, covers a wide range of topics, including wages, working hours, overtime, leave, and benefits. Here are some of the key provisions of the agreement:

Wages and Allowances

Under the new agreement, the minimum wage for entry-level workers in the automotive industry is R4,950 per month. This represents a 5.4% increase from the previous agreement. Skilled workers, such as artisans and technicians, can earn up to R31 per hour, depending on their level of qualification and experience.

In addition to their basic wages, workers are entitled to various allowances, such as a tool allowance, a transport allowance, and a night shift allowance. These allowances vary depending on the type of work and the location of the company.

Working Hours and Overtime

The MIBCO Collective Agreement 2020 sets out the standard working hours for the automotive industry as 45 hours per week, with a maximum of nine hours per day. Workers are entitled to one day off per week, which must be a Sunday unless otherwise agreed.

If a worker works more than the standard hours, they are entitled to overtime pay at a rate of 1.5 times their normal hourly rate. If they work on a Sunday or public holiday, they are entitled to double their normal rate.

Leave and Benefits

Under the new agreement, workers are entitled to various types of leave, including annual leave, sick leave, family responsibility leave, and maternity leave. The number of days of leave varies depending on the length of service and the type of leave.

Workers are also entitled to various benefits, such as a pension fund, a medical aid scheme, and a HIV/AIDS programme. Employers are required to contribute a certain percentage of the workers` wages towards these benefits.


The MIBCO Collective Agreement 2020 sets out the terms and conditions of employment in the South African automotive industry for the next two years. It provides for minimum wages, standard working hours, various types of leave, and various benefits for workers.

Employers in the industry must comply with the provisions of the agreement, which are legally binding. Any disputes or grievances can be referred to the MIBCO Dispute Resolution Centre for resolution.