What are the key terms of the MIBCO 2025–2028 wage deal?
The MIBCO 2025–2028 wage deal is a three-year collective agreement between employers and unions that mandates phased percentage increases for all motor industry sectors. It includes specific adjustments to minimum wage schedules, changes to social fund contributions, and updated allowances designed to ensure industry stability through 2028.
How much will MIBCO wages increase in 2025?
For the first year of the agreement (2025), MIBCO wages will increase by a weighted percentage based on the specific sector and job grade. For example, Sector 5 (Fuel Retailers) and Sector 6 (Vehicle Dealerships) have distinct schedules. Failing to implement these increases on the anniversary date leads to automatic non-compliance and potential DRC disputes.
Sector-by-Sector Highlights
- Sector 4 (Parts Distribution): Focus on warehouse and logistics grades.
- Sector 5 (Fuel Retailers): New minimums for Forecourt Attendants and Cashiers.
- Sector 6 (Dealerships): Adjustments for Sales staff and Technicians.
What happens if you miss a MIBCO wage increase deadline?
Missing a MIBCO wage increase deadline triggers immediate back-pay liability for all affected employees from the date the increase was due. Unions and Designated Agents frequently audit these anniversaries; any shortfall identified will result in a non-compliance notice and a 14-day window to rectify the debt before legal action.
How can you ensure your business is ready for the 2025-2028 changes?
To stay ready for the 2025-2028 changes, you should subscribe to the MIBCO Compliance Blog and perform a Strategic Compliance Audit to verify your current wage schedules. Proactive preparation is significantly cheaper than resolving disputes at the DRC later.
Stay informed. Download the 2025-2028 Wage Schedule Cheat Sheet.