TL;DR: No. A workshop cannot change an employee's hours and pay through a private deal with the employee and the union. Bargaining in the motor industry happens at central level. One employer tried it, told MIBCO afterwards, and still had to pay more than R72,000 in unpaid increases.
A motor industry employer cannot cut hours by private agreement, even when the employee and the union say yes. The Main Agreement sets the terms. Any change goes through MIBCO first.
This post walks through a real MIBCO Dispute Resolution Centre ruling. The names are removed. The lesson is not.
The ruling was made under the Main Agreement in force at the time. Check the clause numbers against the 2025–2028 Main Agreement before you rely on them.
What Happened in This Case?
A small workshop lost work. Demand for its core service dropped.
The owner did not retrench. He met the employee and the union. All three agreed to cut the employee's hours. The employer then told MIBCO through the comments on its monthly forecasts.
Later, MIBCO claimed the increase the Main Agreement guarantees. It calculated the claim as if the employee still worked a 45-hour week. He did not. The amount came to more than R72,000.
The employer had a defence:
- The employee agreed.
- The union agreed.
- MIBCO knew.
- The change came five months before the agreement was signed.
The employer said no exemption was needed.
This is a common story in the sector, and exactly the kind of compliance gap a MIBCO compliance audit closes before it costs you.
Why Did the Employer Lose?
The panelist accepted that MIBCO had been told. That did not save the employer.
The Main Agreement says bargaining takes place at central level. It bars two-tier bargaining on matters of mutual interest. The one carve-out is Sector 6, where parties may negotiate actual wages at plant level.
The employer, the employee and the union made their own deal. MIBCO was "merely advised". The panelist held that this ran against central bargaining.
The panelist also found that the clause protecting employees' existing remuneration applied to the employer. In short: telling MIBCO is not the same as involving MIBCO.
The employer had to pay the debt within 14 days of the award. The ruling left one door open. The employer could still apply for exemption or condonation.
Does Union Agreement Make a Change Legal?
No. A union cannot agree to terms below the Main Agreement on the employer's behalf.
The Main Agreement binds the industry. A plant-level deal that cuts pay or hours does not replace it. Everyone can act in good faith and the deal still fails.
Three points to hold on to:
- Consent does not cure a breach. The employee said yes. It made no difference.
- Notice is not approval. A forecast comment is a note. It is not an application.
- Good intent does not lower the bill. The employer wanted to save a job. The debt stayed.
At ThreeOneSolutions, we audit wage schedules against the agreement every day. This is the error we see most often: a fair deal that sits outside the rules.
What Should an Employer Do Instead?
Apply first. Change second.
- Stop. Do not put any change to hours or pay into effect yet.
- Check the Main Agreement. Find the clause that governs the change.
- Apply to MIBCO for an exemption. Do this before you act. Do not wait for an inspector.
- Document the request. Keep the application, the response and the dates.
- Change only what MIBCO approves. Put the outcome in writing for the employee.
Slow trading is a real problem. Retrenchment is a separate process with its own steps under the Labour Relations Act. Short-time and reduced hours have their own rules too. Do not guess which one applies. Our short-time masterclass covers the process step by step.
If you are unsure whether your contracts and hours match the current agreement, a MIBCO compliance audit takes less than a week.
What Does the Ruling Not Settle?
Be careful with this ruling. It leaves gaps.
- The employer argued the change came before the agreement was signed. The panelist did not address that point directly.
- The ruling does not say what remedy the employee gets beyond the debt.
- Exemption and condonation remained open to the employer. The ruling does not record what happened next.
Read it as a warning about process. Do not read it as a full map of your rights.
Frequently Asked Questions
Can an employer reduce an employee's hours if the employee agrees? Not on the employee's agreement alone. The Main Agreement sets the terms, and central bargaining applies. Apply to MIBCO for an exemption before you make the change.
Does telling MIBCO after the fact protect the employer? No. In this ruling, MIBCO was informed and the employer still lost. Informing the council is different from getting its approval.
Can a union agree to a plant-level deal that lowers pay? Not outside the Sector 6 carve-out for plant-level talks on actual wages. Even there, check the wording of the agreement before you act.
What can an employer do after an adverse ruling? The ruling in this case allowed the employer to apply for exemption or condonation. Pay attention to the deadline for payment. In this case it was 14 days from service of the award.
Where can I find the rules on dispute resolution? Start with MIBCO's dispute resolution page. Motor industry disputes go to the MIBCO Dispute Resolution Centre (DRC).
Catch the gaps before MIBCO does. Book a MIBCO compliance audit.