Home / Knowledge / News / Apparel/Garments / South Africa extends clothing sector wage agreement
South Africa extends clothing sector wage agreement
15
Apr '13
The Minister of Labour has extended the 2012/2013 clothing industry bargaining council wage agreement to non-party companies. The extension was gazetted on Friday 12 April 2013. 

The agreement was signed in early October last year, after negotiations between the Southern African Clothing & Textile Workers’ Union (SACTWU) and seven clothing employers’ organisations represented on the National Bargaining Council For The Clothing Manufacturing Industry (NBC).

The gazetted extension of the agreement has the effect of making its terms legally binding on all clothing employers and all clothing workers in all parts of South Africa nationally, and empowers the bargaining council to prosecute those employers who do not comply with the agreement’s provisions.

The summary key provisions of the now extended agreement are as follows:

-it increases the minimum wage by 6.5% in metro areas and by 10% (rounded) in non-metro areas such as Newcastle;

-it abolishes the previous “new entry rate” which permitted employers to employ new workers on a lower wage rate  of 75%  of the qualified rate in metro areas and on 80% of the qualified rate in non-metro areas;

-it replaces the abolished “new entry rate” with an “incentivised wage rate”, which permits the employment of new workers on 80% of the qualified rate but supplemented with a compulsory incentivised wage component which shall allow such workers to earn up to 100% or more of the qualified rate;

-it restricts access to the  newly introduced “incentivised wage rate” by making it not applicable to employer organisations which have not signed the agreement and those non-employer association companies which have not implemented the new wage increases (the Natal Clothing Manufacturers’ Association [NCMA] is the only one of the seven NBC party employers’ associations which has not signed the agreement);

-it prohibits employers from retrenching older workers and to replace them with new workers on the incentivised wage rate;

-retrenched employees are given the right to preferential re-employment in their same previous job category and wage rate;

-all employers (including those not represented at NBC level) are in future required to implement all agreements negotiated at NBC level, failing which an automatic 10% wage increase shall become applicable to them with effect from 1  September each year;-the wage gap between metro wages and non-metro wages shall automatically be narrowed as follows (it is currently at about 68%):

- To 71% from 1 September 2013;
- To 73% from 1 September 2014;
- To 75% from 1 September 2015.

-it encourages compliance with the new wage agreement by affording current non-compliant companies an opportunity to lift their non-compliant rates immediately to a minimum of 80% of the wage rate and to phase in to 100% of the rate over an 18 month period, in equal 6-monthly increments; companies who honour this term of the agreement will be accorded “Level B” compliance status and are automatically exempted from bargaining council prosecution;


Must ReadView All

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search