The National Bargaining Council of the Energy Industry (“NBCEI”) now covers those employed in the solar industry. Specifically, the NBCEI introduced job descriptions in May 2023 which included descriptions for “PV installers”. PV is an abbreviation for photovoltaic. A photovoltaic system describes a system made up of one or more solar panels, an inverter, and other electrical and mechanical hardware that uses the sun to generate electricity. In simple terms, it describes a solar system. “PV” installers are therefore installers of solar systems and/or solar panels.

What does this mean for your business? Well, in South African employment law, there are the base pieces of legislation like the Basic Conditions of Employment Act (“BCEA”) and the Labour Relations Act (“LRA”) that cover all employees in every industry. In addition to those base layers, there are what we call Collective Agreements. Collective Agreements are agreements that alter the basic terms and conditions of employment provided by the BCEA and LRA for specific industries. Collective Agreements usually arise as a result of an agreement between trade unions which represent employees, and employer’s organizations which represent employers. They effectively agree on terms and conditions of employment that would both maximize efficiency and protection for employees in a specific industry. These Collective Agreements are often administered or “controlled” by bargaining councils. In this what the NBCEI is: The bargaining council for the energy industry.

Usually, Collective Agreements are only applicable to parties to the agreement as they have elected to be bound by the specific terms of that agreement. However, the LRA empowers the Minister of Employment and Labour to extend Collective Agreements to non-parties. If and when this occurs, that Collective Agreement becomes binding on all businesses falling within that industry, limited only by the Collective Agreement. On 19 May 2023, the Collective Agreement entered into between the Electrical Contractors’ Association and the South African Equity Workers’ Association was extended to non-parties. This will remain in effect until 28 February 2029. What does this mean for your solar business? That you technically need to comply with this Collective Agreement which requires you to register with the NBCEI. It also requires that you adhere to employment terms and conditions set out in the NBCEI Collective Agreement. Non-compliance with the NBCEI Collective Agreement could result in compliance orders being issued by the Department of Employment and Labour and/or penalties. Only if you have applied and been granted exemption from the Collective Agreement are you excused from having to comply.  

If you want to know about the NBCEI, the Collective Agreement, or the exemption process, get in touch with us.