Durban - About 80 000 clothing workers have won an 8.5% salary increase this year, in terms of settled wage negotiations in the country’s clothing and manufacturing industry.
This comes after the Southern African Clothing and Textile Workers Union (Sactwu) reached a settlement under the auspices of the National Bargaining Council (NBC) for the Clothing Manufacturing Industry.
In a statement, Sactwu general secretary Andre Kriel said yesterday the two-year agreement, which was above inflation, was signed at a national bargaining council meeting last Thursday.
“For the first year, a package increase of 8.5% will become effective on 1st September this year. Of this, 8% will be allocated to increase the industry minimum wage and 0.5% will be used to improve the employer provident fund contributions,” Kriel said.
He also said in the second year, an increase of consumer price index (CPI) plus 1% would become effective in September 2017.
“This is provided that in the event of CPI plus 1% resulting in the total labour cost increase being less than the rand value increase for 2016, the adjustment for next year will be the rand equivalent of the 2016 total labour cost increase.
“Should CPI plus 1% in 2017 exceed this, the parties shall renegotiate the total labour cost quantum,” Kriel said.
He also said the wage agreement also provided for improvements in shop stewards’ paid time off, improved sick leave provisions for workers, and a commitment to host an industry summit to evaluate the state of the industry and discuss what more should be done to further stabilise and grow it.
“In a novel first for the industry, the agreement introduces a provision which imposes joint and several liability regarding sub-contracting to non-compliant companies.
“This is to further help stamp out non-compliance with the agreed industry terms and conditions of employment.
“The agreement also calls for a review of the industry grading system, to accommodate new forms of work and work organisation which has arisen as a result of technology changes in the industry.”
Kriel also stated that the agreement would be submitted to the Minister of Labour, Mildred Oliphant, to request her to publish it in a government gazette and also extend it to the whole industry.
DAILY NEWS