Home Press Releases Archived 2016 SACTWU settles its 2016 Clothing Industry wage negotiations
SACTWU settles its 2016 Clothing Industry wage negotiations PDF Print E-mail
Monday, 29 August 2016 12:23
MEDIA RELEASE:  IMMEDIATE
The COSATU-affiliated Southern African Clothing & Textile Workers’ Union (SACTWU) has settled its 2016 wage negotiations for the domestic clothing manufacturing industry.
Negotiations commenced in April this year, and a settlement was reached under the auspices of the National Bargaining Council for the Clothing Manufacturing Industry (NBC). The agreement was signed at a Council meeting of the NBC last Thursday.
It is a two year agreement.
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.
The increase is above inflation. Stats SA has just recently announced that the latest available inflation rate for July 2016 is 6%.
For the second year, an increase of CPI plus 1% will become effective on 1st September 2016. 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.
The agreement also provides 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 agree 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.
Approximately 80 000 clothing workers nationally are expected to benefit from this agreement. We dedicate this agreement to honouring women during this Women’s month.
The agreement will be submit to the Minister of Labour, to request her to gazette it and extend it to the whole industry.
Issued by
Andre Kriel
SACTWU
General Secretary
If further information is required, kindly contact SACTWU’s Deputy General Secretary, Chris Gina, on office land-line number 031 3011351 or cell number  082 940 9456.
MEDIA RELEASE:  IMMEDIATE

The COSATU-affiliated Southern African Clothing & Textile Workers’ Union (SACTWU) has settled its 2016 wage negotiations for the domestic clothing manufacturing industry.
Negotiations commenced in April this year, and a settlement was reached under the auspices of the National Bargaining Council for the Clothing Manufacturing Industry (NBC). The agreement was signed at a Council meeting of the NBC last Thursday.  
It is a two year agreement. 

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.

The increase is above inflation. Stats SA has just recently announced that the latest available inflation rate for July 2016 is 6%.

For the second year, an increase of CPI plus 1% will become effective on 1st September 2016. 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.

The agreement also provides 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 agree 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.

Approximately 80 000 clothing workers nationally are expected to benefit from this agreement. We dedicate this agreement to honouring women during this Women’s month.

The agreement will be submit to the Minister of Labour, to request her to gazette it and extend it to the whole industry.

Issued by Andre Kriel
SACTWUGeneral Secretary
If further information is required, kindly contact SACTWU’s Deputy General Secretary, Chris Gina, on office land-line number 031 3011351 or cell number  082 940 9456.