Sectional Title Living

Cleaner-gardener wages

Minimun wage increases for domestic workers from 1 December 2012. The South African Department of Labour implemented Determination 7 to protect domestic workers from exploitation. A sectional title scheme usually employs one or more persons (depending on size and scope of common services needed), if it does not make use of contract-services. Such persons are classified as domestic workers and the Determination 7 applies to the relationship between such individual/s and the body corporate, as employer. However, there are contrasting opinions if the sectoral determination 7 applies to the employees of a body corporate - added 27 September 2010.

Minimum wages for domestic workers are set in terms of Determination 7. The minimum wage table is divided in two areas. Area A includes the following South African local governments: Bergrivier Local Municipality, Breederivier Local Municipality, Buffalo City Local Municipality, Cape Agulhas Local Municipality, Cederberg Local Municipality, City of Cape Town, City of Johannesburg Metropolitan Municipality, City of Tshwane Metropolitan Municipality, Drakenstein Local Municipality, Ekurhulen Metropolitan Municipality, Emalahleni Local Municipality, Emfuleni Local Municipality, Ethekwini Metropolitan Unicity, Gamagara Local Municipality, George Local Municipality, Hibiscus Coast Local Municipality, Karoo Hoogland Local Municipality, Kgatelopele Local Municipality, Khara Hais Local Municipality, Knysna Local Municipality, Kungwini Local Municipality, Kouga Local Municipality, Langeberg Local Municipality, Lesedi Local Municipality,  Makana Local Municipality, Mangaung Local Municipality, Matzikama Local Municipality, Metsimaholo Local Municipality, Middelburg Local Municipality, Midvaal Local Municipality, Mngeni Local Municipality, Mogale Local Municipality, Mosselbaai Local Municipality, Msunduzi Local Municipality, Mtubatu Local Municipality, Nama Khoi Local Municipality, Nelson Mandela, Nokeng tsa Taemane Local Municipality, Oudtshoorn Local Municipality, Overstrand Local Municipality, Plettenbergbaai Local Municipality, Potchefstroom Local Municipality, Randfontein Local Municipality, Richtersveld Local Municipality, Saldanha Bay Local Municipality, Sol Plaatjie Local Municipality, Stellenbosch Local Municipality, Swartland Local Municipality, Swellendam Local Municipality, Theewaterskloof Local Municipality, Umdoni Local Municipality, uMhlathuze Local Municipality and Witzenberg Local Municipality. Area B includes the rest of the country not specified in A.

The minimum wage table is divided in two tables. Table 1 determines the minimum wages for domestic workers who work more than 27 ordinary hours per week, whereas Table 2 specify the minimum wages for domestic workers who work 27 ordinary hours or less per week.

Herewith a combination of Tables 1 & 2 for area A only:

Minimum rates for the period 1 December 2012 to 30 November 2013
TABLE 1: 27+ hours		TABLE 2: ≤27 hours
Hourly Rate (R )	8.95	Hourly Rate (R )	10.48
Weekly Rate (R )	402.96	Weekly Rate (R )	285.62
Monthly Rate (R )	1746.00	Monthly Rate (R )	1237.60

Minumum rates for Table 1 (area A) 1 Dec 2012 to 30 Nov 2013 are plus 7.4%

Note that the CPI (excluding owners' equivalent rent) has replaced CPIX according to Gazette No 32397 regulation No. R. 737 dated 17 July 2009 and the August CPI was available 6 weeks prior and thus utilised.

The wages for 1 December 2012 to 30 November 2013 was calculated as follows: CPI (excluding owners' equivalent rent) plus 1% for Area A = 6.4% + 1% = 7.4%.

Each unit owner pays her/his/their share of the wage/s, included in the levy, based on the participation quota relevant to the unit.

Updated 8 December 2012

Application to rescind a CCMA award

If die Body Corporate receive notification of a hearing at the Commission for Conciliation, Mediation and Arbitration (CCMA), make sure an suitably competent  person attend to prepresent the Body Corporate's position. However, if an Award has been made erroneously by the CCMA in the absence of a Body Corporate representative, the appropriate way to contest it is through an official application to the CCMA within the prescribed time frame and in accordance to procedure:

1. Visit the CCMA webpage: http://www.ccma.org.za/
2. Note on the left-hand, under Site Navigation, second from the bottom the Contact Us link — giving the contact details of the various CCMA offices.
3. On the Welcome to CCMA(Home) page, is a box in the centre — below the Call Centre box, marked Referral Forms. There is also a link in about the middle of the Site Navigation list, for Referral Forms. Click on either for a list of forms to open.
4. Listed second from the top is a form Rescission Application Form. Click on this link and then on the link to download the form: Download Rescission application form
5. Just below the Referral Forms link is a link Rules and Legislation. It is a very important that the Body Corporate follow the rules as specified.
6. Take note of rule 32(1) "an application for a variation or rescission of an arbitration award or ruling must be made within fourteen [14] days of which the applicant [Body Corporate] became aware of [it]". Rule 3 specifies how the CCMA counts calendar days. (Refer to Rule 9 if outside of the applicable time period, for how to seek condonation).
7. Fill out the form by providing concise and accurate detail and inform the original applicant.
8. Once proof of service (refer to Rules 5 & 6 for how to serve documents and proof) to the applicant exists, submit (refer to Rule 7 for how to file documents) the application to the relevant CCMA office and await a hearing date. The CCMA insists on serving first and then filing.
9. On the date of the hearing go and present the Body Corporate's case in support of rescinding the erroneously made award. (Refer to Rule 30 to note what may happen if trhe Body Corporate fails to attend the proceedings).

The scenario on which this post is based:

The trustees followed due process; part ways amicably (so they thought) with a former employee; but out of the blue receive a Commission for Conciliation, Mediation and Arbitration (CCMA) arbitration award notification?

A path of disciplinary action had been walked with a cleaner-gardener, without much success. The trustees took note of an announcement on 11 July 2008 by the Department of Social Development, that the eligibility of the 'old age grant' of the South African Social Security Agency (SASSA) that had previously been 63 years of age for men, changed as from April 2010, namely the eligibility age for men would in future be 60 (the same as for women). The trustees advised the particular cleaner-gardener, in writing in his salary increase notification letter in February 2009 that he will be retired in April 2010. In April 2010 he had been reminded in writing about the previous notification and served 'termination' due to retirement notice. The trustees also provided him with a certificate of service stating the reason for his termination of employment is that he reached the retirement age of 60 on 10 September 2009 and therefore qualifies from 1 April 2010 for an older persons grant.

The CCMA Arbitration Award notice claimed that the Body Corporate had been advised by registered mail of the hearing, which had not been received due to mailed to an incorrect address. The former employee lied under oath about the circumstances related to his retirement notice.

I did not know this, I submitted a written response to the CCMA contesting the award — information I transferred to the Rescission Application Form. I subsequently checked with Legal and Tax (a legal advisory and legal fees insurance cover) who advise me about me about the correct procedure. However, I filed before I served and corected the error afterwards.

Revised 21 September 2010.

Sharing costs through sectional title ownership

A substantial advantage of owning property in a sectional title scheme, in contrast to free-hold property where everything belongs to the owner, is that ownership of everything other than the your personal section is shared ownership. The title deeds usually reads something to the effect of:

A unit consists of: (a) ...; and (b) an undivided share in the common property apportioned to the said section in accordance with the participation quota as endorsed on the said section plan.

This reality is possibly the biggest problem of sectional title ownership, in that owners appear to perceive that some entity other than themselves are responsible. This 'b' part of the title deed encompass membership of the body corporate of the scheme. The Sectional Titles Act (STA), No 95 of 1986, §36(1), as well as the Sectional Titles Schemes Management Act, No 8 of 2011—that would amend section 36 of the STA—§2(1) reads:

With effect from the date on which any person other than the developer becomes an owner of a unit in a scheme, there shall be deemed to be established for that scheme a body corporate of which the developer and such person are members, and any person who thereafter becomes an owner of a unit in that scheme is a member of that body corporate.

This is an important issue that Andrew Buttress fails to address in his message to the Roodepoort Record (Download Is_threre_a_loophole_in_the_law-loss_of_financial_control_Rdp_Record_22July2011). The abovementioned acts outline the responsibilities of the body corporate, which is elaborated upon in the prescribed management rules (PMRs). It is important to note that a body corporate may make use of the services of a managing agent, but is not obliged to, they owners may self administer. PMR 46 outlines what the appointment, powers and duties of a managing agent (MA) should entail. In my opinion MA is a misnomer, it should be administrative agent.

The biggest 'loophole' in sectional title is owner apathy. There are many checks and balances in place to preserve the rights of owners, but few owners show any real interest. What Constantia Sectional Title Management did is criminal, but it does not absolve the trustees and owners of schemes affected from their responsibility.

Who is liable to pay CoJ with CSTM being liquidated?

Do you as owner know for sure that all services rendered are paid up to date or do you pay your levies and don’t bother? Some 22 000 owners of some 450 sectional title schemes, most of which probably within the City of Johannesburg, relied on third and fourth parties with regard to their personal financial obligations.

In sectional title schemes everything that is not part of the individual sections is owned by the collective of owners, known as the body corporate. This collective, as legal persona, has obligations. The liquidation of Constantia Sectional Title Management (CSTM) should serve as a wake-up call for all sectional title owners. Download CSTM - Trustee Letter - Lexstar

• On 24 May 2011 the North Gauteng High Court in Pretoria ordered the liquidation of CSTM
• All trading halted and accounts frozen pending investigation
• It will take quite a while before any funds available will be released
• Owners are not able to sell their properties and buyers may find it hard to obtain loans

This means that 450 schemes were without the funds, held in trust at CSTM, since 24 May 2011 and that 22 000 owners are facing financial liabilities if the body corporate concerned does not have a separate bank account in its own name to keep the reserves for maintenance.

Hard as it may seem, it is none of the concern of the local authority if funds entrusted to a third party disappears. The local authority renders services and has the right to payment. The same apply to all the other service providers of the bodies corporate affected.

Many bodies corporate rely on managing agents to take care of everything. Some bodies corporate even experience difficulty at annual general meetings (AGMs) to get trustees elected. Many owners never attend AGMs and abdicate all responsibility.

The nomination and election of trustees for each financial year is a very important matter. Owners are entrusting the financial well being of the collective property and responsibility to such individuals elected as trustees. The trustees in turn may self manage the affairs of the scheme or employ an agent to handle certain affairs entrusted to such a service provider. However, the trustees remain responsible to manage, maintain and control and in turn are accountable to the collective of owners. Michael Bauer advocates the four eyes principle contained in prescribed management rule 27.

The collective of owners annually approve the budget for the financial year ahead. This budget determines the levies payable by owners of individual sections in accordance to the participation quota (prorate portion in the scheme). The collective of owners makes the rules in according to which the trustees manage the affairs of the collective. The trustees get the annual financial statements produced and audited for tabling at the AGM.

No 40% increase of minimum wages for domestic workers in SA

Contrary to the proposals by the CPLO (see below) the Gazetted increase in the minimum wages of domestic workers from 1 December 2011 to 30 November 2012 is less than eight percent (8%). Download Domestic_Worker_amendment_2011.2012

Briefing Paper 271—October 2011. of the Catholic Parliamentary Liaison Office (CPLO). of the Southern African Catholic Bishops' Conference (SACBC), reports on the recent country-wide series of hearings by the Department of Labour to advise the labour minister on determinations of wages.

The existing amendment to Sectoral Determination 7: Domestic Workers, of the Basic Conditions of Employment Act (BCEA), applies up to 30 November 2011. This amendment comprises two (2) minimum Wage Tables for the Domestic Worker Sector:

• Table 1 for those workers who work more than 27 ordinary hours per week
• Table 2 for those workers who work 27 ordinary hours per week or less

Each table differentiate two geographical area categories, namely ‘Category A’ denotes urban areas and ‘Category B’ all other (rural) areas. There are therefore four sets of three each minimum wages specified, namely: hourly, weekly and monthly. A 20% (R1.28 per hour) gap exists between the urban and other categories.

The Sectoral Determination 7: Domestic Workers applies to all domestic workers. This includes independent contractors and domestic workers employed by agencies, but excludes domestic workers who:

• work on farms; or are covered by
• another sectoral determination, or
• a bargaining council agreement.

Various organisations propose a minimum wage of R2500 per month, which represents a sharp rise of almost R1 000 per month (almost 40%) for domestic workers. The CPLO Briefing Paper 271 elaborates on the rationale. Download 35771_bp_271_domestic_workers_wage_determination_hearings_oct_2011