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Another first for MISA

Aug 27, 2025 MISA, Hermann Köstens, settlement agreement, MIBCO Wage and Substantive Negotiations, consumer price index (CPI)

Another first for MISA

MISA signed a settlement agreement for the MIBCO Wage and Substantive Negotiations in Ferndale, Johannesburg for the first time as the majority trade union in the retail motor industry. It is also the first time since 2010 that MISA is a signatory to the agreement. Employees in the retail motor industry will get a wage increase above the consumer price index (CPI) for the next three years. This agreement includes substantive issues that effects the working conditions of employees.

Hermann Köstens, MISA’s Chief Executive Officer: Strategy and Development, says MISA experienced that the short time clause was being abused by some employers. “It was crucial for MISA to change the wording of the short time clause in the agreement to protect workers when disputes arise. The term “slackness of trade” is defined more appropriately to reduce the potential for abuse,” says Köstens.

The agreement will now be submitted by MIBCO to the Minister of Labour and Employment Nomakhosazana Meth for promulgation.

The increases vary for the different Sectors in the industry as set out below.

It will be implemented in the industry once published in the Government Gazette for three years until 31 August 2028.

The increases are:

Sector 1 – Chapter III

Component manufacturers

On actual rates of pay

Year 1: 6 %

Year 2: 5 %

Year 3: 5 %

Sector 5

Fuel Retailers

Forecourt Attendants:

On minimum rates of pay

Year 1: 6%

Year 2: 5%

Year 3: 4%

Cashiers & Chars

Year 1: 6%

Year 2: 4%

Year 3: 4%

Primary healthcare: 1% of the increases will be afforded to employees in the form of an allowance towards primary health insurance, over the duration of the agreement. Employees will have a choice to opt in or out of the primary healthcare scheme which will be implemented on 1 January 2026.

All other sectors

On minimum rates of pay

Year 1: 5%

Year 2: 5%

Year 3: 5%

In the case of sector 6, wage and salary increases are based on minimum rates of pay only, for the respective and relevant grades of pay, for the following periods:

Year 1: 5%

Year 2: 5%

Year 3: 5%

Employment on artisan’s work - The parties agreed that, where unqualified employees were engaged to perform aspects of Artisan’s work, and were not remunerated in line with the applicable wage rates of Artisans, such employees must be compensated directly for the underpayment.

Overtime – Sector 1 – Chapter3 (Component manufacturers)

It is agreed that all workshop employees and chars shall be remunerated for overtime worked at a rate of one and a half times their ordinary hourly rate.

For more information contact Sonja Carstens, Manager of MISA's Media & Communication Department, on 082 463 6806 or email Sonja.Carstens@ms.org.za.