Date: 31 December 2020
Media Release: immediate
7.5% New Year’s day wage increase for Footwear and Leather sector workers
The COSATU-affiliated Southern African Clothing & Textile Workers’ Union (SACTWU) is pleased to announce that thousands of its members in the footwear- and tanning leather sector in South Africa can look forward to a 7.5% wage increase, with effect from 1 January 2021.
This follows amending wage agreements for the sector concluded with footwear- and leather sector employers, in July this year.
These new collective agreements were struck under the auspices of the leather industry bargaining council, following a series of intense but constructive negotiation sessions, all virtually conducted during lockdown, together with NULAW.
For us, the unexpected negative impact of COVID-19 necessitated the immediate and urgent re-negotiation of previously existing multi-year collective agreements for the footwear- and tanning sectors, in order to protect and advance our members’ income levels, under very difficult economic conditions.
We are pleased that we have been successful in this endeavour, under extremely difficult concrete conditions.
In addition, a further separate wage agreement provides that workers in the general goods and handbags section of the leather industry have already received a 2.5% wage increase with effect from 1 August this year, and a further 0.5% wage increase with effect from 1 February next year.
These amending collective agreements are supplemented and strengthened by other agreed COVID-19 income-loss mitigating measures which have increased the effective take-home pay increases of our members to above-inflation levels. These additional mitigating measures include provisions such as employee healthcare levy contribution holidays without loss of any industry healthcare benefits, reduced bargaining council levy contributions, and guaranteed 2020 annual bonuses.
Further wage increases are due to be negotiated for our footwear and leather sector members during the first half of next year, to take effect from 1 July 2021.
Approximately 14 000 footwear and leather sector workers in South Africa are expected to benefit from these new amending collective agreements.
Issued by
André Kriel
SACTWU
GENERAL SECRETARY
If further comments or information are required, please contact SACTWU KZN 1st Provincial Organiser and Leather Sector National Co-ordinator, Mr Nadasen Govender on cell number 084 593 2428.
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