Often the question is asked; Why is there a need for a Bargaining Council in the Hairdressing, Cosmetology, Skincare, and Beauty Industry?
WHAT IS A BARGAINING COUNCIL? A Bargaining Council is a body that is established by one or more Employers’ Organisations and one or more Trade Unions. It must be registered under the Labour Relations Act for a particular industry.
WHAT ARE THE POWERS AND FUNCTIONS OF A BARGAINING COUNCIL?
Concluding and enforcing collective agreements
Preventing and resolving labour disputes
Establishing and managing a dispute resolution fund
Promoting and establishing training and education schemes
Establishing and managing schemes or funds to benefit its parties or members
Making and submitting proposals on policies and laws that affect a specific sector or area
Certain bargaining councils have the status to resolve labour disputes in the same way as the CCMA. Therefore, the CCMA does not have jurisdiction to preside over labour disputes in a specific industry, if an accredited bargaining council exists.
The impact of a Bargaining Council versus the Basic Conditions of Employment Act No. 75 of 1997 within the Hairdressing, Cosmetology, Skincare, and Beauty Industry is as follows:
Bargaining Council Main Collective Agreement:
Industry specific conditions of employment is negotiated by the EOHCB and UASA with mandates received from the Industry
The Board of the National Bargaining Council for Hairdressing, Cosmetology, Skincare, and Beauty comprise of Employers and Employees active within the Industry represented
The Main Collective Agreement entered into between the parties to the council (EOHCB & UASA The Union) is implemented and facilitated by the Bargaining Council Staff
Clear industry regulations are defined and clarified.
Compliance inspections are conducted by Bargaining Council Agents
The conduct of Agents is managed by the Board of the council
Industry operational and educational standards are implemented and facilitated through the council
Collective bargaining through the council allows for an Industry Pension Fund and Sick Pay Fund (including Maternity Leave Benefit)
Dispute resolution managed by the council
VERSUS
Basic Conditions of Employment Act No. 75 of 1997:
Determining conditions of employment allows little to no possible input from the Industry
Lack of industry-specific regulations
Ambiguous compliance requirements
Employment compliance are conducted by Department of Employment and Labour Inspectors
High frequency of issuing subpoenas to Salon Owners for inspections
The Department of Employment and Labour has poor industry knowledge
The conduct of Labour Inspectors is managed by the Chief Inspector
No Industry Benefits, unless implemented by the Employer and agreed upon by the employee
No maternity leave benefits
No mandated pension funds
Dispute resolution managed through the CCMA
The National Bargaining Council for Hairdressing, Cosmetology, Skincare, and Beauty is represented by the Employers’ Organisation for Hairdressing, Cosmetology, and Beauty (EOHCB) and United Association of South Africa (UASA The Union) who represents the Industry (tri-party).
Industry Benefits through the council and parties to the council:
Industry-specific terms and conditions of employment are negotiated
The Bargaining Council is mandated to ensure industrial compliance
Opportunity for all parties to have direct input towards industrial change
Employers and Employees are afforded industry-specific representation
Unique industry characteristics can be addressed such as:
High percentage of female employees
Unique Health and Safety risks
High number of new salons entering the market etc.
Benefits of Representing Bodies: EOHCB
Opportunity for Employer to provide industry change
Labour representation and consultation which is cost effective
Access to and representation at conciliation and arbitration
Employer representation at Bargaining Council Board: (a) Input regarding Agent conduct (b) Input regarding Commissioner Conduct (c) Input regarding Bargaining Council matters
UASA The Union
Opportunity for Employee to provide industry change
Union membership benefits
Union representation on relevant matters: (a) Salon-level disputes (b) Disciplinary action (C) Representation at conciliation and arbitration
Employee representation at Bargaining Council Board: (a) Input regarding Agent conduct (b) Input regarding Commissioner Conduct (c) Input regarding Bargaining Council matters
Non-Militant dispute resolution approach
The National Bargaining Council for Hairdressing, Cosmetology, Skincare, and Beauty positively impacts the Industry through:
Industry Pension Fund: Implemented to ensure Employees have adequate retirement funds in place when leaving the industry, and should an employee become disable, that a disability benefit can assist with the impact of permanent disability. In the event of death, the fund also provides a death benefit payable to the Employee’s beneficiary.
Leave: Ensure that Employees have adequate time to rest, recuperate and attend to family responsibilities.
Sick Pay Fund: Funded by both Employer and Employee. Additional sick leave days are provided, as well as a maternity benefit. Working Employers and Legal Owners may also belong to the Industry Sick Pay Fund.
Occupational Clarity: Wage and salary clarifications based on job definitions and qualifications.
Hours of Work: Sundays, Public Holidays, meal intervals, and overtime hours and remuneration therefore is negotiated based on Industry-specific needs.
Target-driven Employment: Commission structures are strictly negotiated with priority in ensuring salon viability whilst an employee is on leave.
Let us compare beneficial conditions of employment and risks contained in the Main Collective Agreement of the National Bargaining Council for Hairdressing, Cosmetology, Skincare, and Beauty which are negotiated by the EOHCB and UASA The Union, to the Basic Conditions of Employment Act of South Africa, which sets the scene in terms of the benefits of a Bargaining Council in an Industry.
Now herewith an illustration of how a Bargaining Council is financially beneficial to an Employer by using remuneration calculations for work performed on a Sunday, when a Sunday forms part of the ordinary working hours per week or Personal Services Commission (PSC) is to be paid for annual leave, notice pay (when an employer waives an employee’s notice), and severance pay.
In both these illustrations, we apply calculations based on Area A (The Provinces of Gauteng (excluding the Magisterial Districts of Bronkhorstspruit, Cullinan, Pretoria and Wonderboom), Province of Free State, Kimberly, East London, Humansdorp, Port Alfred, Port Elizabeth, Uitenhage, the balance of all Magisterial District of the Eastern Cape Province, balance of all the Magisterial Districts of Northern Cape Province and all the Magisterial District of the North West Province (excluding the Magisterial District of Brits, Rustenburg and Mankwe).
Please remember that remuneration for Sunday work and Personal Services Commission percentages differ for other areas as per the Main Collective Agreement.
In summary, we wish to emphasize the Pros & Cons impact on Employers and Employees should an establishment within the Hairdressing, Cosmetology, Beauty, and Skincare Industry operate under the Basic Conditions of Employment Act No. 75 of 1997.
Employees: Cons –
Loss of Employer contributions to Pension Fund Benefits
Complete loss of Pension fund
Loss of Sick Pay Fund Benefits
Maternity Leave Benefits
Loss of Mandated Wage Increases
Loss of Industry Representivity
Pros –
Short-term Saving
Fewer month-to-month costs
More Pay During Annual Leave
Uniform is completely paid by employer
Longer Lunch Breaks
Less administration and paperwork
No claim issues as there are nowhere to claim from.
Employers: Cons –
Staff receive fewer benefits
Longer Notice Periods
Sunday work hours are double-time
Shorter preparation times for Bargaining Council cases
Increased costs for staff uniforms
Pros –
Fewer mandated monthly costs - No Pension Fund / Sick Pay Fund
Less Administration regarding employment compliance
No Compassionate Leave for staff
No prescribed wages
Less severance pay due to staff in retrenchments
For more important advice to ensure you follow the correct labour practices in your salon, please contact your local EOHCB HERE.
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