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South African RMG workers to see a wage increase

The Southern African Clothing and Textile Workers’ Union (Sactwu), an affiliate of Cosatu, has revealed members of clothing industry in the metro areas of South Africa would receive a 7.5 percent wage increase and workers in the non-metro areas would receive an 8 percent package increase – of which 7.5 per cent will go on wages and 0.5 per cent to improve employer contributions to the provident fund.

This second-year wage increase would be in line with the consumer price index (CPI) as at November 2018, plus an additional 1 per cent. In the event of CPI plus 1 percent resulting in the total labour cost increase being less than the rand value increase for 2018, the adjustment would be the rand value equivalent of the 2018 total labour cost increase. The wage settlement was arrived after three rounds of ordinary negotiations, the declaration of a dispute and two conciliation sessions to attempt a settlement of the dispute.

The agreement covers more than 60,000 clothing workers, employed in 745 factories nation-wide. The wage increase component alone, combined for all the workers, will mean a total cash amount injection of R250m into the domestic economy, over the next year.

 

 
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