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At the end of March 2026, the Department of Employment and Labour published two closely linked Government Gazette notices affecting employers in the motor industry who fall within the registered scope of the The Motor Industry Bargaining Council (MIBCO).

The first notice extends an amending Administrative Collective Agreement to employers and employees who are not members of the bargaining council parties, while the second notice corrects an error by replacing the schedule that was originally attached.

For employers, the practical message is simple: Even if you are not a party to MIBCO, certain administrative obligations and levies can still become compulsory if you operate within MIBCO’s scope – and you must apply the corrected schedule.

The Two Notices in Plain Language

The extension notice: Government Notice R. 7320 (Gazette 54425, dated 30 March 2026) records the Minister’s declaration – issued in terms of Section 32(2) of the Labour Relations Act (LRA) – that the collective agreement set out in the schedule “shall be binding on the other employers and employees in that industry” (i.e., non‑parties) from the second Monday after publication, and will run until 31 August 2030.

The correction notice: One day later, Government Notice R. 7333 (Gazette 54438, dated 31 March 2026) was issued as a correction notice. It instructs the public to replace the schedule attached to R. 7320 with a corrected schedule. In other words, the extension decision remained, but the content that employers must implement (the “schedule”) had to be substituted.

It is important for employers to recognise this sequencing, because if you relied on the first publication alone, you may have picked up the wrong schedule. The correction notice is effectively saying: “Use this version – this is the enforceable schedule for implementation.”

The amended collective agreement takes effect from 13 April and runs until 31 August 2030.

Who is covered?

The corrected schedule makes it clear that the agreement applies to all employers and employees in the registered scope of the Council, including non‑parties to the extent that the Minister has granted an extension under Section 32 of the LRA.

It also lists specific exclusions aligned to Section 2 of the LRA, namely the National Defence Force, the National Intelligence Agency, and the South African Secret Service.

A key takeaway for employers is that membership status is not the only trigger; the trigger is whether your operations fall inside the registered scope of MIBCO and you employ people who perform work covered by that scope. The notice language is deliberately broad: It is aimed at the industry footprint, not only at bargaining council members.

Specific Amendments

The corrected schedule is an amendment to the MIBCO Administrative Collective Agreement, referencing the agreement previously published under Government Gazette 53822, Notice R. 6924 of 12 December 2025 (as amended and extended).

The substantive change is specific and financial. In sub‑clause 13(5) the schedule substitutes the weekly contribution amount from: R3.71 per week (per employer and per employee) to R3.84 per week (per employer and per employee).

This matters because administrative agreements typically regulate bargaining council administration – especially levies/contributions, collections, and related compliance mechanisms. The corrected schedule indicates that this particular amendment is directed at contributions/levies rather than (for example) wage rates.

Compliance and Cost Implications

Correction notices can look minor, but they create a common risk: Implementing the wrong schedule. Here, the corrected schedule directly changes a monetary figure i.e. from(R3.71 to R3.84.

This has several knock‑on effects:

• Incorrect deductions and contributions: If you continued using the earlier rate, employee deductions may be understated and employer contributions may be short, creating arrears exposure.
• Reconciliation and back‑payments: Because the extension becomes binding from the effective date (second Monday after publication), employers who update late may need to reconcile the difference from the enforceable start date.
• Employee relations issues: Small weekly figures can become sensitive when they accumulate or when employees notice retrospective deductions. Clarity and transparent communication reduce disputes and payroll queries.

The Industry-Wide Impact

The most important industry impact is that the notice reinforces the regulatory function of bargaining councils i.e. sector‑wide standardisation of specified administrative obligations (in this case, a levy rate) beyond the immediate signatories.

For employers competing in the same market, extensions to non‑parties can have several effects:

• A more level cost baseline: When a levy applies broadly, it reduces the ability of non‑party employers to undercut costs by avoiding council-linked administrative obligations – at least for the items included in the extended agreement.
• Greater compliance expectations in the supply chain: Original Equipment Manufacturers (OEMs), dealerships, fuel retail groups, and fleet operators increasingly expect labour law compliance from service providers. A gazetted extension gives auditors and contracting parties a clearer benchmark.
• Operational focus on classification and scope. Employers with mixed activities such as retail plus workshop, fuel plus convenience or logistics plus maintenance, may need sharper role mapping to determine which employees are covered by MIBCO’s registered scope. The schedule’s emphasis on “registered scope” makes this a central compliance question.

Immediate Next Steps for Employers

Focus on the three workstreams of scope, payroll, and governance in order to translate these notices in practice:

• Confirm whether you fall within MIBCO’s registered scope: The extension applies to employers and employees in that scope, including non‑parties. If you are uncertain because your business spans more than one activity, document what your employees actually do (job functions as opposed to just job titles), and align that to the council’s scope definitions used in your industry.
• Update payroll systems to the corrected weekly contribution: The corrected schedule replaces the earlier figure with R3.84 per week “applicable to Employers and Employees.” Ensure that the change is set to apply from the enforceable start point (13 April 2026), and that your payslips and remittance processes reflect the correct employer/employee treatment.
• Build a short audit trail: Keep a file note (or internal memo) referencing the two notices i.e. the original extension (R. 7320) and the correction (R. 7333) that replaced the schedule. This is useful for internal approvals, payroll change control, and responding efficiently if an inspector, auditor, or employee queries why deductions changed.

The Bottom Line

For employers in the motor industry, these March 2026 notices are a clear reminder that bargaining council obligations can be extended to non‑parties by gazette, and that correction notices can materially change what you must implement.

If you are within MIBCO’s registered scope, you should be applying the corrected weekly levy figure of R3.84 per week for employers and employees from the effective date framework set out in the notices, through to 31 August 2030.