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News Mpumalanga industry up in arms over Bargaining Council Several beauty salons and spas in Mpumalanga are objecting to what they describe as the ‘bullying tactics’ of the National Bargaining Council for the Hairdressing Cosmetology Beauty & Skincare Industry in South Africa. The Council takes its statutory authority from the South African Labour Relations Act (Act 66 of 1995), with registration to the Council mandated by the Main Collective Agreement, as signed by the Minister. A spa owner in the Mpumalanga area, who wished to remain anonymous, told Professional Beauty that some businesses had shut their doors as they were unable to meet the Council’s levies, with numerous therapists retrenched. Professional Beauty contacted the Council’s acting CEO, Frik Bekker, for comment. He replied: “We are not aware of any owners who closed down in Mpumalanga, or of any therapist retrnechments.” The spa owner continued: “Myself and other owners in the area find the Council levy structure outrageous and believe that the Mpumalanga industry pays the highest Council levies in South Africa.” Bekker responded: “The Council levy is payable by the employer and the employee. For establishments registered prior to November 2017, there is a fixed rate applicable to both the employer and employee contribution, in line with other provinces in South Africa. For establishments registered after November 2017, the contribution by the employer and employee are both based on 1.3% of the Contributing Wage. “Because Mpumalanga falls within the extension of scope of the Council, we’ve phased in the online @ probeauty.co.za
levies – contributions are limited to 60% in year 1 (2020), 80% in year 2 (2021) and then only 100% in year 3 (2022).”
Pension Fund A big area of contention is the Pension Fund. Said another spa owner, who also did not wish to be named: “The Council is pressuring us to contribute to the Pension Fund but our therapists are unwilling to pay a substantial chunk of their monthly salary to a pension fund, as they need that money for transport, etc. Similarly, many owners can’t afford to match each therapist’s monthly Pension Fund fee. And, we’ve been given no indication of the Pension Fund payout.” Bekker responded: “The Parties to the Council – the EOHCB (Employers Organisation for Hairdressing Cosmetology and Beauty) and the Union – negotiate the contributions for all funds applicable to industry on an annual basis. The HBSI (Hairdressing Beauty Skincare Industry) Pension Fund contribution is 12% of the prescribed minimum salary, with 6% payable by the employee and 6% payable by the employer based on the prescribed minimum salary as published in the wages schedules. For Mpumalanga, the contributions payable have been phased to only include 60% of the contributions in year 1, 80% in year 2 (2021) and then only 100% in year 3 (2022). “Owners can apply for exemptions from the Pension Fund should they wish to rather utilise an alternative fund, as long as benefits are equal or greater than the HBSI Fund.” He noted that the HBSI Fund will only pay out should the
employee retire, leave the industry completely, become permanently disabled, or pass away. Then, the accumulated savings, as well as three times the employee’s prescribed annual salary, and the funeral benefit will pay out to the beneficiaries.
Illegal businesses Owners believe that while they are being pressured into complying with the Council, there are several illegal hair and beauty salons in the area that the Council refuses to approach. According to Bekker, the Department of Labour has exempted the following: hairdressing, cosmetology, beauty and/or skincare services rendered from a canvas or sail gazebo, or if such services are rendered in open spaces, unless chemicals are used in the execution of such services, then such places or premises will be considered an establishment. He said: “As previously mentioned, Mpumalanga forms part of the extension of scope for the Council and we are in the area on a constant basis to ensure compliance by all businesses. Information sessions were held in 2019 and this will continue in 2020 to assist all salon or spa owners to become compliant, but also to understand the purpose of the Council and how it functions within the legal framework of South Africa, as well as the Labour Relations Act.” A petition detailing the above issues (and many more) is being drawn up by industry stakeholders, with the help of a member of the ANC Women’s League, for the Council’s attention. For a more detailed account of this article please visit www.probeauty.co.za
