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The COSATU-affiliated Southern African Clothing and Textile Workers’ Union (SACTWU) has settled its wage dispute in the clothing sector.

This settlement was reached after three rounds of wage negotiations, and two dispute meetings.

Our clothing sector wage negotiations commenced on 12 April 2022, and was conducted under the auspices of the National Bargaining Council for the Clothing Manufacturing Industry.

The new collective agreement was adopted at a constitutional meeting the clothing bargaining council yesterday, 31 August 2022.

This 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).

It is a 2-year agreement which provides for the following improvements to terms and conditions of employment:

•            a 7% wage increase for in Year 1, effective from 1 September 2022;

•            a further wage increase of Consumer Price Index  (CPI) plus 1% in Year 2, effective from 1 September 2023;

•            an additional 0.25% increase in employer provident fund prescribed contribution rates  with effect from 1 February 2023 for non-metro areas,

•            a further 0.25% increase in employer provident fund prescribed contribution rates, effective from 1 February 2024;

•            payment for public holidays which fall on a Saturday, for non-metro area workers;

•            compulsory consultation with the union prior to the introduction of short-time in those geographic areas where no such provision is currently prescribed in the industry Main Agreement.

Approximately 50 000 clothing workers in South Africa will benefit from this wage increase settlement.

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% increase is less than the rand value of the 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 normal wage increase implementation date for the clothing industry is 1st September each year.

This new substantive agreement for the clothing sector will be submitted to the Department of Employment & Labour, with a request for the relevant Minister to gazette its extension and applicability to all clothing companies nationally.

Issued by SACTWU General Secretary, Andre Kriel