Johannesburg - The SA Clothing and Textile Workers' Union (Sactwu) has settled a wage dispute in the wool and mohair textiles sub-sector, it said on Friday.

“It is a two-year agreement. The settlement package is a wage increase of eight percent for the first year and another eight percent wage increase in the second year,” general secretary Andre Kriel said.

He said it was further agreed that an additional 0.5 percent wage increase would come into effect, during the second year, should the consumer price index exceed eight percent by April 2015.

He said about 103 workers in three factories in the Eastern Cape would benefit from this increase.

The union signed the agreement on Thursday and employers were expected to sign it during the course of Friday.

The increases would be backdated to July 1, 2014. - Sapa