EAST LONDON-BASED DaimlerChrysler South Africa has signed what is described as “an innovative and groundbreaking labour agreement with its staff, management and unions.” The new agreement was necessary because of increased demand for the right-hand C-Class Mercedes Benz manufactured in the Eastern Cape for the world market, according to company spokespeople. Johann Evertse, DaimlerChrysler South Africa (DCSA) management board member responsible for human resources, and Wilfred Mestile, chairman of the company's shop stewards council, said the four-year Siyaphambili (moving forward together) agreement included a number of innovations to ensure that cars were built to quality standards, within cost parameters and delivered to customers on time. "The volume quotas agreed on are all linked to on-time delivery instead of being based on the number of cars rolling off the line," DCSA manufacturing manager Sung Lee said. A new performance-based incentive plan could see workers taking home up to 23,5 weeks extra wages a year if all the criteria are met, Evertse said. Staff also agreed to work, at normal pay, a "bridging Saturday" ahead of any public holiday falling on a Thursday or a Tuesday to give the staff the in-between day as a holiday. "The absenteeism when holidays fall at the end or beginning of a week with a work day in-between was very high and this is one way we have of getting a full production day out of the situation," Lee said. Another move to cut absenteeism was the introduction of a lucky draw for a range of household goods each month. A grand draw will take place at the end of the year when any employee who has not been absent, except for legitimate reasons, will be eligible to win a top of the range Colt double cab light delivery vehicle. Other prizes, such as a smaller Colt and cash, would be awarded to those who had lost one, two or three days during the year. The monthly prizes included stoves, refrigerators, television sets and video recorders. "The reason for household goods being offered is to get the whole family interested in cutting down absenteeism. If a worker's wife knows her family is in line for a prize like that, we hope she will also ensure that the family member goes to work," Evertse said. The company and the union also agreed to hire workers on one-year contracts to make up the shortfall in labour during the busy period of the W203's model life. "This eliminates the need for retrenchments if things slow down and also goes a long way to guaranteeing full-time workers their jobs," Lee said. "The contract worker proposal was a difficult one as we had to be convinced that the company was not bringing them in as scab labour," Mestile added. The contract workers will enjoy full, but separate employee benefits such as medical aid and pension as well as being part of the unionised labour force. The company has also agreed to an improved shift system changing from two eight-hour shifts to shifts of just under nine hours each -- for which the extra time will be paid at overtime rates. "The car is so popular that we have to increase production and the longer shifts are one way it can be done," Mestile said. He added that the increased production volumes and the contract labour force were also good for the city and the companies supplying components to DCSA. "If there are more jobs, there is more money ... and the city and the province benefit as well. It really is a win-win situation all round," Mestile said.