Clothing sector signs wage deal

Johannesburg - The Southern African Clothing & Textile Workers' Union (Sactwu) and clothing industry employers on Thursday signed a national wage agreement for the clothing industry, worth a reported R128m in increased wages.

The signing ceremony brought an official end to a 55 000 people strong national wage strike, which started on September 15.

The strike was partially suspended when a settlement of the dispute was brokered by the Commission for Conciliation, Mediation & Arbitration (CCMA) on September 29, but continued in some areas including Botshabelo, Isithebe and QwaQwa until late last week.

According to Sactwu, the settlement is worth R128m in increased wages which is to be injected into the economy over the duration of the agreement.

"This is a welcome cash stimulus package for the industry and for the country. Wage increases will range from between 7% to 11.8% per week on the current minimum wage levels, depending on job category and geographic area," the union said.

"In areas such as Botshabelo, QwaQwa and Isithebe where the actual wage paid is much lower, wage increases will range between 18% and 22% per week. Increases will be backdated to 1st September 2009, the date on which the new wage levels were to take effect. Lower paid workers will get higher percentage increases," it added.

The agreement also provided for the establishment of a clothing industry Productivity Institute, a Clothing Industry Training Board to further upskill workers, mechanisms to address non-compliance with the provisions of the industry agreement by some employers, and a narrowing of the wage gap between metro area workers and non-metro workers.

The trade union called on its members to return the industry to full productivity as soon possible.

Clothing workers could expect the new wage increases in their pay packets with effect from next week, Sactwu concluded.

- I-Net Bridge