In 1974 the first recognition agreement between management and two trade unions was signed in Durban, KZN and Smith & Nephew in the textile industry.

This is a true copy of the actual signed agreement.

AGREEMENT

1          This agreement is made this 18th day of July 1974 between

THE NATIONAL UNION OF TEXTILE WORKERS

and

THE TEXTILE WORKERS’ INDUSTRIAL UNION OF SOUTH AFRICA

both of Central Court, 125 Gale Street, Durban, (hereinafter referred to as “the Unions”) of the one part,

and

SMITH & NEPHEW LIMITED

of 30 Gillitts Road, Pinetown,

(hereinafter referred to as “the Company”) of the other part.

In consideration of their mutual promises and agreements, the parties to this Agreement agree as follows:­

2          PERIOD OF OPERATION

This Agreement shall come into operation when signed by both parties and shall remain binding for a period of 3 (three) years, provided that any clause may be re-negotiated at any time if found to be inadequate by either party, and that either party may re-open negotiations on the question of remuneration on or about 15th August each year.

3          DEFINITIONS

(a)       Unless inconsistent with the context, any expressions appearing in the Agreement which are defined in the Industrial Conciliation Act, 1956, shall have the same meaning as in that Act;   provided that “employee” shall mean any person in the service of the Company, regardless of race.

(b)       For the purposes of clause 4, gradings as set out in the Company circular dated 1st November 1973, signed by Mr. K.F. Lunn, Managing Director of the Company.

4          REMUNERATION

(a)     The Company shall not pay, and no employee shall accept, wages lower than those prescribed hereunder:

 

Male Grade Basic per week
Trainee R16.00
D2 R17.00
D3 R18.50
D4 R20.00
D5 R21.25
D6 R22.30
D7 R23.70
D8 R25.75
D9 R27.40
Female Trainee R11.50
F2 R12.00
F3 R13.00
F4 R14.00
F9 R19.25

(b)       Nothing in this Agreement shall operate to reduce the basic wage being paid to any employee at the date of commencement hereof.

(c)

(i)        With regard to employees other than those working a four shift system, the Company will continue the practice of paying one week in arrear, and will continue to furnish each such employee with a weekly wage slip showing the name or number of the employee; his occupation; the total hours worked;   the remuneration due in respect of ordinary time, bonus, overtime and nightshift allowance;   Sunday time and any other credits;   amounts deducted and the period in which payment is made.

(ii)       With regard to employees working a four shift system, the Company will continue the practice of paying one shift cycle in arrear, and will continue to furnish each such employee with a weekly wage slip showing the name or number­ of the employee;   his occupation;   the total hours worked;   the remuneration due in respect of ordinary time, bonus and overtime;   Sunday time and any other credits;   amounts deducted and the period in respect of which payment is made.

(d)       Any alteration to the job gradings referred to in Clause 3(b) above shall be dealt with in the following manner:­

(i)        Seven days’ notice of intention with reasons shall be given to each employee concerned, and the Company shall provide all necessary training and tuition.

(ii)       Assurance of job security shall be made to each employee concerned provided he undertakes such necessary training and tuition before changes are effected.

(e)       If any temporary work on a lower grade is necessary, this will be dealt with as follows:­

(i)        Notification shall be given to each employee concerned, with reasons for the change and an estimate of its probable duration;

(ii)       Pay at the employee’s normal rate for the permanent job shall be continued.

(f)        A permanent change of occupation shall be dealt with as follows:­

(i)        Seven days’ notice of intention shall be given to each employee concerned;

(ii)       An employee’s entitlement to benefits based on his total length of service shall not be affected in any way.

(g)       If the Company requires or permits a worker from one grade to perform work of a higher grade, for longer than one hour in the aggregate on any day, either in addition to his own work or in substitution therefor, it shall remunerate such employee for all the ordinary hours of work of the establishment on that day, at an hourly rate equal to the higher weekly wage divided by the number of ordinary hours worked by such employee in a week.

(h)       Any employee or his representative is free to approach the Company at any time to explain and/or re-assess his grading.

5          INCENTIVE BONUS

(a)       The incentive bonus shall be based on one-third of basic wage for 100% operator performance and entitlement thereto shall commence at 75% performance as is already the case.

(b)       A new standard shall be considered provisional and subject to alteration for a period of 1(one) month, after which it shall be considered part of the Agreement.

(c)       Any alteration to standards or targets due to method changes or product mix changes shall be notified to employees by being published one week in advance of implementation.

(d)       Each employee shall be regularly informed as to target requirements and potential bonus earnings.

(e)       Bonus earnings for each employee shall be published daily where possible (as is the case now in most areas) but otherwise at an interval of not longer than weekly.

(f)        Any change in present standards and/or bonus earnings not currently based on Work Study assessments shall be the subject of discussion between the Company and employees (or their representatives), except where paragraph (c) applies.

6          JOINT SERVICE ALLOWANCE/ATTENDANCE BONUS

(a)       A joint service allowance/attendance bonus shall be added, but shall be deemed not to form part of the minimum basic wage prescribed in clause 4(a) above, as follows:­

 

Up to 12 months service Nil
From 12 months up to and including 2 years service R0.50 per week
From 2 years up to and including 4 years service R1.00 per week
From 4 years up to and including 9 years service R2.00 per week
From 9 years up to and including 14 years service R3.00 per week
From 14 years up to and including 19 years service R4.00 per week
Over 19 years service R5.00 per week

(b)       The above allowance will not be paid to an employee otherwise entitled to receive such allowance, if he attends for less than one hour in any shift of that week or shift cycle.

(c)       Workers shall receive recognition of service in the form of job security in that the last worker hired shall be the first to be laid off.

(d)       Entitlement to the joint service allowance/attendance bonus shall be based on the employee’s ordinary working week or shift cycle, as the case may be.

7          COST OF LIVING/STANDARD OF LIVING INCREASE

The minimum basic wages laid down in clause 4(a) above shall be revised with effect from the first day upon which general production commences in the Company’s establishment in January 1975, January 1976 and January 1977, as follows:­

(a)       An adjustment calculated to the nearest half per cent shall be made based on the percentage difference, if any, between the “index figures” (as defined below) published for August 1973 and August 1974 in respect of the January 1975 adjustment, and between such figures published for the two immediately preceding Novembers in respect of each of the two later adjustments.   For the purpose of this sub­ clause, “index figure” means the “All Items” Consumer Price Index figure for Durban, issued by the Department of Statistics and published in the Government Gazette.

(b)       To the percentage determined in terms of the preceding sub-clause shall be added a 2½ “standard of living increase”.

8          ORDINARY HOURS OF WORK

The ordinary hours of work of an employee shall not exceed:­

(a)        45 hours in any week.

(b)       In the case of an employee who works a five day week, nine hours in any day.

(c)        In the case of employees on shift work, other than those working a four shift system, 128 hours in any shift cycle of three weeks and eight hours on any one shift.

(d)       In the case of employees working a four shift system, 34½ hours in any six day cycle.

(e)        Two tea breaks shall be taken on each shift, the first of 15 minutes duration and the second of 10 minutes duration;   provided that each such break shall be deemed to form part of the ordinary hours of work.

(f)        A meal break of half an hour’s duration shall be given within the first five hours of work of each shift, which break shall be deemed not to form part of the ordinary hours of work.

9          OVERTIME

(a)       The Company shall require an employee to work overtime only in exceptional circumstances.   Normally all overtime is voluntary

(b)       An employee who works overtime shall be paid at a rate of not less than one and one-third times his normal hourly rate in respect of hours so worked.

(c)       Employees required to work overtime shall be notified at least four hours before the end of the day on which overtime is deemed necessary.

(d)       A meal and rest break of 15 minutes duration shall be given before the commencement of overtime where the overtime follows a normal working day or shift.   The periods of work before and after such break shall be deemed to be continuous.

10        SHIFT WORK

(a)       All employees working shift work, except those referred to in sub-clause (b) below, shall be paid an additional 10% shift work allowance on the minimum basic wage set out in clause 4(a) above, in respect of hours worked between 8 p.m. and 6 a.m.

(b)       All employees working a 4 shift system shall be paid an additional 20% shift work allowance on such minimum basic wage.

(c)       Should the Department of Labour exemption presently in force allowing, inter alia, for the 2 hours worked on Sunday to be remunerated at ordinary time, fall away, such hours shall thenceforth be remunerated at double time.

11        SUNDAY TIME

(a)       The Company shall require an employee to work on Sundays only in exceptional circumstances.

(b)       An employee who works on a Sunday shall be paid double time.

(c)       With regard to employees working a four shift system, all references to “Sunday” in this clause shall be deemed to mean the first rest day following a normal three-day working cycle.

(d)       An employee who works on a Sunday for a period not exceeding 4 hours, shall be paid not  less than the wage payable in respect of the period ordinarily worked by him on a week day.

(e)       An employee who works on a Sunday for a period exceeding four hours, shall be paid at a rate not less than double his ordinary rate of wages in respect of the total period so worked or at a rate not less than double the wages payable in respect of the period ordinarily worked by him on a week day, whichever is the greater.

12        PUBLIC HOLIDAYS

(a)       An employee shall be granted leave on New Year’s Day, Good Friday, Easter Monday, Ascension Day, Republic Day, the Day of the Covenant and Christmas Day and shall be paid in respect of each such day not less than the remuneration to which he would have ordinarily been entitled had he worked on that day;   provided that an employee may be required to work on any such day.

(b)       Whenever an employee works on any such day, the Company shall pay him the amount referred to in sub-clause (a) above, and in addition shall pay him remuneration at a rate not less than his ordinary rate of remuneration in respect of the total period worked on such day.

(c)       Where any such public holiday falls on a Saturday or Sunday, or during the Company’s annual shut-down, an employee shall be paid for such holiday as specified in sub-clause (a) above.

13        ANNUAL LEAVE

(a)       The Company shall grant in respect of each completed 12 months of employment:­

(i)        In the case of a 5 day week employee, 12 consecutive working days paid leave of absence.

(ii)       In the case of a 6 day week employee, 15 consecutive working days paid leave of absence.

(iii)      In the case of an employee working a 4 shift system, 9 consecutive working days paid leave of absence.

(b)       The major portion of such leave shall be granted and taken between 15th December and the 15th day of the succeeding January provided that a Despatch employee or any other employee who does not take paid leave of absence within such period shall take such leave before the beginning of the following May.

(c)       An employee who has not completed a full year’s employment with the Company shall be granted paid leave of absence at the rate of one-twelfth of his annual entitlement for each completed month of employment.

(d)       The amount of leave pay to which an employee is entitled shall be calculated by dividing the total remuneration earned during the year by the number of days or shifts worked, and multiplying the result by the number of days leave due.

(e)       Each employee shall be paid a “holiday bonus” of one week’s average total wages to be added to his leave pay;   provided that an employee who has not completed a full year’s  employment with the Company shall be granted such bonus at the rate of one-twelfth of one week’s average total wages for each completed month of employment.

(f)        The remuneration in respect of annual leave shall be paid not later than the last working day before the date of commencement of such leave.

(g)       An employee who has completed more than one month’s employment with the Company and whose employment terminates before the commencement of the annual leave, shall be paid on such termination leave pay calculated in terms of sub-clause (d) above, read with sub-clause (c) above.

14        SICK LEAVE

(a)       An employee who is absent from work through sickness or injury not caused by his own misconduct and in respect of which no disablement payment is payable in terms of the Workmens’ Compensation Act, 1941, shall be granted by the Company:­

(i)        In the case of a 5 day week employee, 10 working days;

(ii)       In the case of a 6 day week employee, 12 working days;

(iii)      In the case of an employee who works a 4 shift system 7 working days,

sick leave  in the aggregate during each 12 consecutive months of employment, and shall be paid in respect of any period of absence in terms of this sub-clause an amount of not less than the minimum wage he would be entitled to had he worked during that period, and in addition the average incentive bonus payable for such period.

(b)       If an employee is unable to work for up to 6 months due to any sickness or injury other than sickness or injury caused by the employee’s own misconduct, the Company shall re-employ him on the termination of such sickness or injury at not less than the wage he was receiving before his sickness or injury, and his periods of employment with the Company shall be deemed to be continuous for the purposes of any length of service or other benefits.

15        TERMINATION OF EMPLOYMENT

(a)       The Company or an employee, desiring to terminate the contract of employment, shall give:

(i)        During the first 30 days of employment, not less than one work day’s;

(ii)       After the first 30 days of employment, not less than one week’s  notice of termination of contract.

(b)       The Company or an employee may terminate the contract without notice by paying the employee or paying the Company, as the case may be, in lieu of such notice not less than:­

(i)        In the case of one work day’s notice, the daily wage which the employee is receiving at the time of such termination;

(ii)       In the case of one week’s notice, the weekly wage which the employee is receiving at the time of such termination;

Provided that this shall not affect:

(i)        The right of the Company or an employee to terminate the contract without notice for any cause recognised by law as sufficient;

(ii)       Any written agreement between the Company and an employee which provides for a period of notice of equal duration on both sides and for longer than that prescribed in this clause;

(iii)      The operation of any forfeitures or penalties which by law may be applicable in respect of an employee who deserts.

(c)       The notice prescribed in sub-clause (a)(ii) above shall be in writing.

(d)       No employee shall be discharged without reasonable cause.

(e)       When the Company terminates an employee’s contract of employment, whether summarily or by notice, the Unions shall be notified within 24 hours of such termination.   The Unions shall then have the right to invoice the adjustment and arbitration procedures laid down in clause 17 hereof.

(f)        An employee shall be given two verbal warnings and one written warning before the Company becomes entitled to terminate his contract of employment by notice.   If the employee is not discharged within 3 months of the date on which the written warning is given, such warning shall be withdrawn.

(g)       Except where a contract of employment of an employee is terminated on the ground of desertion, the Company shall upon termination of any contract of employment furnish the employee with a Certificate of Service signed by the Company, showing the full name of the employee, his occupation, the date of commencement and the date of termination of the contract and the weekly wage of the employee on the date of such termination.

16        ACCESS OF THE UNIONS’ OFFICIALS TO THE FACTORY AND SHOP STEWARD STRUCTURE

(a)        Access to the Company’s premises shall be granted to the Unions’ officials outside of working hours and on Wednesdays, between 11.30 a.m. and 2.30 p.m.   Any other access to be by mutual consent.

(b)       Each Departement, where practicable, shall elect a shop-steward who will represent the Unions in such Department.

17        ADJUSTMENT AND ARBITRATION PROCEDURES

(a)       The parties shall make an earnest effort to settle promptly any dispute or grievance that may arise, by means of the following procedure:­

Step 1

By discussion between the employee concerned and his immediate supervisor.

Step 2

If the matter is not adjusted satisfactorily under step 1, it may be remitted to the foreman.   If settlement is still not arrived at, the matter may be remitted to the Departmental Manager, and through him if settlement is still not reached, to the Manager of the relevant Division.   An employee shall always be free to approach his shop steward for help and advice and/or representation.   Such consultation must be in the employee’s own time.

Step 3

If there is no settlement after the provisions of Step 2 have been carried out, and the shop steward and the employee concerned wish the matter to go further, the matter shall be put in writing, signed by the shop steward and discussed within 7 days by an official of the Unions and a representative of the Company.   No such matter shall be dealt with in terms of this paragraph unless such written case is delivered to the Company within 30 days after the occurrence of the event giving rise to the matter or within 30 days after the Unions or employee concerned should reasonably have known of the occurrence of such event, whichever is the later;   provided that this time limit shall not apply in the case of individual or collective wage claims.

Step 4

If there is no settlement after the provisions laid down in step 3 have been carried out, either party may within 14 days, in writing, request arbitration, and the other party shall be obliged to proceed with arbitration in the manner set out in sub-clause (b) below.

(b)

(i)        The parties shall forthwith attempt to agree upon an impartial arbitrator.   If they cannot so agree within 10 working days of the request for arbitration, the party requesting arbitration may within 28 days thereafter refer the matter to Court.   In such event, the costs of the action shall be borne individually.

(ii)       The arbitrator or judge shall have authority and jurisdiction to view the matter in question in light of the terms of this Agreement, but he shall not have the power to alter or modify the terms of the Agreement.   Any decision of the arbitrator or judge shall be final and binding upon the Company, the Unions and members of the Unions.

(iii)      With regard to arbitration involving the discharge or discipline of an employee, the arbitrator or judge shall determine if the discharge or discipline was justified, and he shall review the penalty imposed.   He shall have the authority and jurisdiction, if he thinks fit, to order payment of back wages and/or to make such other award as may be appropriate or just.

(c)       Lengthy discussions concerning grievances, amongst employees or between employees and officials of the Unions, including shop-stewards, shall not take place during working hours.

(d)       The Company shall take all reasonable steps to assist the Unions in the performance of their rights and duties under the Agreement.

(e)       The Company shall have the right to hold discussions with a shop-steward and/or other official of the Unions on its grievances, criticisms or other problems.

18        PROHIBITION OF INDUSTRIAL ACTION

(a)       The adjustment and arbitration procedures established in terms of this Agreement shall be the exclusive means for the determination and settlement of all disputes and grievances.

(b)       During the currency of the Agreement, the Unions shall not encourage or support any strike, picketing, stoppage or slow-down of work by any of their members, and the Company shall not engage in any lock-out of its employees.

Except as otherwise provided in this Agreement, it is understood and agreed that the Company is entitled to all rights and privileges of management, which shall include but shall in no way be limited to, the right to determine the size and duties of the work force, the right to direct the work force, the allocation and assignment of work to employees, the organisation and duties of  management personnel, and the right to curtail or suspend all operations temporarily or permanently.   Any dispute or grievance arising in connection herewith shall be adjusted in accordance with the relevant provisions of this Agreement.

SIGNED at PINETOWN this  19th day of July 1974.

            Signed “L. Khumalo”

for THE NATIONAL UNION OF TEXTILE WORKERS

            Signed “illegible”

for THE TEXTILE WORKERS’ INDUSTRIAL UNION OF SOUTH AFRICA

Signed as an expression of general intentions under the specific agreement that so soon as a formal legal document to replace these presents is available the parties hereto will execute the same in replacement hereof.

The partners undertake to use their best endeavours to finalise the said legal document within a period to three weeks from the date hereof.

Signed “Kenneth Lunn”

Smith & Nephew Ltd

Managing director

On Friday 19th July 1974

Countersigned

Signed “L. Khumalo”

on behalf of N.U.T.W.

Note: other signature illegible