The settlement was negotiated under the auspices of the National Bargaining Council for the Leather Manufacturing Industry of South Africa.

A 7.5% wage increase was agreed to, with the Association of South African Manufacturers of Luggage, Handbags & General Goods, which is the organization representing employers in the sector. The wage increase comes into effect nationally on 1 July 2012 and is effective for a one year period.

It covers 83 factories in the sector, employing approximately 2000 workers.

Southern African Clothing & Textile Workers' Union (SACTWU)