Business Insider article causes concern in industry

An article published by Business Insider on Friday 12 June, stating that industry “demands June bonuses”, has caused a lot of concern in the industry. We are aware that Business Insider is being contacted with the correct facts to update this article. Below is an explanation – short summary: if you are paying your staff according to the industry’s prescribed salaries then you have no need for concern.

Factual Update

The main agreement and all its provisions have now been extended to non-parties. A non-party is a salon/employee/legal owner who is or is not registered with the National Bargaining Council and who has chosen not to be a member of the EOHCB or UASA the Union. When salaries for party salons/employees increased 1 Sept 2019, non-parties could not increase salaries or pay the once off ex-gratia increase in salary for the month of August 2019 because it only applied to party salons/employees. Now with the extension of the agreement to non-parties, the 2019-2020 salary increases becomes applicable and the once-off ex-gratia "bonus" payment for non-party salons/employees. If you increased salaries 1 Sept 2019 like you should have, and if you remunerate according to the prescribed salaries of the industry, the ex-gratia "bonus" was paid for August 2019 already and the extension does not apply to you.

The industry will be publishing further updates on this asap.

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