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FUELSTREAM Newsletter - Best Practice Newsletter

FUELSTREAM Newsletter Nr 36

  • - CCMA Demarcation Arbitration Award to determine which business units fall within the scope and jurisdiction of MIBCO
  • - Promotion Calculator - Kit Kat Case Study
  • - VIDEO: Excellent TEDTalk by Dan Pink on what motivates people
  • - VIDEO: Daring robbery on the forecourt
  • - MIBCO Wage Negotiations - looking back at 2013

Tired of managers forgetting to do those critical monthly tasks? Don't have time to setup action plans for them every month? Click HERE and find the solution with SSSM Performance!
Sign up now and get the rest of April for FREE. Contact Anje or Zelna at (012) 804 5066.

CCMA Demarcation Arbitration Award

We have attached and shared this document with permission of the Dealer involved in the case. Download the full award document by clicking HERE

Here are some excerpts from the document:
The issue to be decided - "The issue before me to be decided is which of the following business units fall within the scope and jurisdiction of the Respondent, namely at the Applicant's premises the Petrol Station, Corner Bakery, Restaurant, Woolworths Food and Steers Fast Foods."

The final award - "I find that the 4 (four) (franchise) businesses of the Applicant, being the Corner Bakery, the Restaurant, the Woolworths Food and the Steers Restaurant and Take Away do not fall within the jurisdiction of the Motor Industry Bargaining Council."

This is clearly an important case that could have significant repercussions for the fuel industry. Here are a few notes from our discussion with the Dealer:

  • Employees were appointed with job descriptions and job titles that reflect the sector/business unit they are employed in e.g. griller, perishable merchandiser, baker, etc. This is distinctly different from the Main Agreement which does not make provision for these job titles.
  • Fuel related employees such as forecourt attendants and cashiers handling forecourt transactions were registered with MIBCO as required.
  • MIBCO makes provision for a 'separate establishment' which some Dealers interpret as being a separate company. In this award it appears that you don't need to register a separate company and transfer your employees as long as you can show they are not engaged in fuel related business.
  • The employees that were not registered with MIBCO were registered with the relevant sector council e.g. catering and retail.

Another point to consider is the impact on wages. MIBCO wages do not provide guidelines for other job titles, as noted above. This places the Dealer in a difficult position and often results in employees being paid a rate that is not comparative to the relevant industry e.g. retail.

The upcoming wage negotiations may be an opportunity to make changes.

If you have any comments or suggestions please share them with us.

Promotion Calculator

Click on the link below to view and download an easy-to-use promotion calculator. It assists you to quickly determine the number of units you must sell during a promotion to generate the same profit in Rand value as before the promotion.

Click HERE

Keep the following in mind:
  • The objective of a promotion is not always to generate the same profit as before, it could also be to launch a new product, increase units sold or to give customers a "new" reason to visit your store. It could also be to show your customer that they get extra value when visiting your business.
  • On the webpage you will also find a case study for a Kit Kat promotion.
Special thanks to Bertus Cloete for developing the calculator and sharing it.
Do cash incentives work? If not, what is the alternative? View the TEDTalk above, given by Dan Pink, on the issue of motivating employees and how money influences the outcomes.
Just when we thought we knew most of the tricks, there is a new one. Although this may be more likely to happen in a "self service" environment.
Visit our new SSSM website by clicking here

Visit our new website HERE and sign up for SSSM Performance for just R1'495 ex VAT p/m by clicking HERE 

Sign up now and get the rest of April for FREE. Contact Anje or Zelna at (012) 804 5066.


If you have always wondered where the monthly fuel price change press releases are published, then follow this link to the Central Energy Fund's website.

MIBCO Wage Negotiations

Each year we receive a number of calls from Fuel Retailers concerned about the strike and the negotiations. Therefore, for reference, we have attached some documents from the previous negotiations in 2013. This will help you with a bit of background on what happened in 2013.

We will start to hear more and more about the upcoming MIBCO wage negotiations, which will inevitably disrupt the industry and end up with a strike. This is very unfortunate and it happens every time. Below is a link to the Strike Notice for 2013 in which you can see some of the demands that were made by the unions during the last negotiations.

Click HERE to refresh your memory on what happened in 2013.

We will keep you updated with information as we receive it later in the year.

Futurent Consulting - Making a difference
+27 (12) 804 5066 
FUELSTREAM is a best practice newsletter for the fuel industry. We share ideas with fuel retailers, oil company personnel and anyone interested in the fuel indus
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