Bargaining council rates?

[skatingsparks]

You bigger guys with more staff.

I CANNOT believe that companies are paying the rates issued by the bargaining council. I have had guys help me over the years (temp/casual) but I don't see how smaller companies are supposed to employ trade tested electricians at the Bargaining Council rates full time.

Along with all the other expenses (public liability insurance, vehicle insurance, fuel, DOL, ECA, tools, testers etc etc.... )you would not be able to make a salary.

How?

[Dave A]

How?

If you have enough billable hours of work at the right rate, it works out just fine.

[skatingsparks]

If you have enough billable hours of work at the right rate, it works out just fine.

A one man + one electrcian + one labourer business with insurance, UIF, DOL, ECA, pensions, petrol, tools, testers, safety files, medicals, courses (fire fighters/first aid), accountancy fee, admin fees, office fees etc etc there ain NO WAY you can CONSISTANLY invoice enough hours to cover the rates they dictate.

I worked out to employ an electrician and one labourer with everything else on top I would have to invoice pretty much R400 an hour - 10 months a year and 45 hours a week for a R25000 - R30000 a month (depending on where you are working) salary.

I say 10 month as the whole of December is shut down, January is queit and add public holidays plus a few days where you don't have work. Add another 2 weeks for sickness or some crisis you going to need R450 every hour for 10 months a year.

You going to work yourself to death for that. Why would you bother to employ people?

Yeah, maybe if you are a big operation with multimillion Rand projects but other than that - no way.

[Dave A]

And if you charge R550 or R600 per hour?

[skatingsparks]

And if you charge R550 or R600 per hour?

I am charging more than that - the point is the consistently part.

Yes if you charged R750 an hour 10 months 10 hours a day, every working day every year then yes - but mean while back on planet earth - that's not possible.

I worked on expenses rates for 10 months as I said (Christmas is a a few weeks off and the industry shuts down things don't run for about 4 weeks), public holidays is quite few more days (12), couple of days to sort the van (service, repair etc). January to Feb is always quiet so if you miss a week or 2 there.
Traffic - I must lose at least a few weeks worth of hours in traffic every year.

The margin for problems is so small - sick for 2 weeks it's will cost you thousands. Major mechanical issue - will cost you 1000's in lost time.

Just saying there is no incentive to employ people. The additional admin, when we tried was staggering - had to pay extra staff just to handle that side of things.

And honestly - yet to meet a qualified electrician (that doesn't have there own business) worth anywhere near the R126 and hour that the council demand we pay.

I know one of the local BIG guys is using nearly all trainees (the ones that come from colleges that need hands on experience and you get a stipend for them). They have 3 or 4 qualified guys managing 30 - 40 trainees.
How does that help the industry. As soon as they are "qualified" they are unaffordable.