South African clothing sector workers to get 7% wage hike from Sep 1

02 Sep '22

2 min read

Pic: Shutterstock/ IvanRiver

Clothing sector workers in South Africa have secured a 7 per cent wage hike from September 2022. The Southern African Clothing and Textile Workers’ Union (SACTWU), which is affiliated to the Congress of South African Trade Unions (COSATU), settled its wage dispute after three rounds of wage negotiations and two dispute meetings. Around 50,000 clothing workers in South Africa will benefit from this wage increase settlement.

The wage negotiations were conducted under the auspices of the National Bargaining Council for the Clothing Manufacturing Industry, according to a press release by the SACTWU. The new collective agreement was adopted at a constitutional meeting of the clothing bargaining council on August 31, 2022.

Along with the wage hike, the two-year agreement provides for the following improvements to the terms and conditions of employment. A further wage increase of Consumer Price Index (CPI) plus 1 per cent in Year 2, effective from September 1, 2023 would be carried out. Moreover, a 0.25 per cent increase in employer provident fund prescribed contribution rates with effect from February 1, 2023 for non-metro areas as well as a further 0.25 per cent increase in employer provident fund prescribed contribution rates, effective from February 1, 2024 will be passed.

The agreement also prescribed that non-metro workers be paid for public holidays which fall on a Saturday. Consultation with the union was made compulsory prior to the introduction of short time in those geographic areas where no such provision is currently prescribed in the industry main agreement.

For the year 2 wage increase, the CPI of June 2023 as determined by Statistics South Africa (STATS SA) will be used. In year 2, if the CPI plus 1 per cent increase is less than the rand value of this year's wage increase, the wage increase will be the rand value of this year's increase. If it is more, the parties will renegotiate.

The usual wage increase implementation date for the clothing industry is September 1 each year.

The new wage collective agreement was concluded with employers represented by the Apparel and Textile Association of South Africa (ATASA), the South African Apparel Association (SAAA), and the South African Clothing Manufacturers' Association (SACMA), added the release.

The new substantive agreement for the clothing sector will be submitted to South Africa’s department of employment and labour, with a request for the relevant minister to gazette its extension and applicability to all clothing companies nationally.

Fibre2Fashion News Desk (NB)