The National Bargaining Council for Road Freight and Logistics Industry (NBCRFLI) is a compulsory Bargaining Council, which means that even if your Company contains one truck that carries, transports and stores freight for transport for reward, your Company does need to go through the process of registering with the NBCRFLI.
What is Road Freight?
Road freight is cargo movement between two places (a place of loading and a place of unloading) using power vehicles via a road network. These vehicles include curtain-sided transportation, flat-bed transport, temperature-controlled transport, box truck/containerised transport, car-carrying trailer, and project cargo transport.
These are transport vehicles designed to deliver cargo (freight), essentially trucks.
What falls within the scope of the NBCRFLI?
The Bargaining Council encompasses all Employers and Employees who are involved with the carrying or hiring for reward in the Road Freight and Logistics Industry (Trucking Industry) if they conduct the following duties:
- Transportation of goods by motor transport.
- Storage of goods incidental to transporting these items later on.
- The Hiring out of Temporary Employment Services for transportation and storage as in (1) and (2).
This excludes activities within the Motor Ferry Industry and Transnet Bargaining Council.
Why should I register with the NBCRFLI
The Law states as per the Main Agreement (The laws of the NBCRFLI), the Bargaining Council Rules and regulations extend to non-parties. This means that even if you have not joined the Council, you are still governed by the laws of the NBCRFLI.
What does the main agreement cover?
This includes work hours, overtime, payment, sick leave, maternity leave, absenteeism, and safety; the list is not enclosed.
What if I don’t want to comply with the main agreement cover?
If your company contravenes the Main Agreement, it can be fined or issued with a compliance order.
Fines can also be issued with a fine for ‘back pay’ payment if you do not comply with the pay rate stipulated in the Main Agreement for your Employees. This amount is updated yearly.
How do I join the NBCRFLI?
You can contact the NBCRFLI and ask an Agent to assist you. Click here: https://www.nbcrfli.org.za/Pages/Contact/Contact.aspx to find the number for your region.
How much will I pay, and what is the benefit to my business?
Employers must pay 0.4% of an Employee’s salary as dictated by the Main Agreement to the council in levies, and the Employee matches this in a deduction of wages that is 0.4% that goes to the Council.
Employees in this industry are supported and benefit from several funds provided for and managed by the Council. These funds are
- Holiday Bonus Fund;
- Medical Insurance;
- Sick Leave;
- Annual Leave;
- Providing Health and Wellness;
- Provides Dispute Resolution.
For over 25 years, SEESA has guided businesses through the complexities of Bargaining Councils. Let our expertise be your advantage. Call 080 001 1130 now or Click here, and we will call you.
Author:
Isaivani Govender
Labour Legal Advisor
LLB, CHRM