Wage Settlement Update 2017


With the inflation rate not stopping its upward creep, the price of goods and services naturally must increase to keep up with this. Thus, during wage negotiations, and resulting wage settlement talks, it is necessary to ensure that these discussions are very carefully handled.

At our recent Annual Labour Law Update, Global Business Solutions CEO – Jonathan Goldberg – outlined some of the successful wage negotiations that have taken place.

In the metals and engineering sector, five unions – among these the National Union of Metalworkers of South Africa (NUMSA) as well as the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), signed a wage agreement for the period 1 July to 30 June 2020). According to this agreement there will be a:

  • 7% wage increase in 2017,
  • 6.79% increase in 2018, and
  • 6.5% increase in 2019.

The chemicals sector saw increases of 7.5% in 2017 as well as rises equal to the consumer price index (CPI) plus 1.9% in 2018. The minimum wage increases to R6 671.25 in 2017.

At the time of the 2017 Annual Labour Law Update, agreements were due to be signed in the following sectors:

Glass Sector

On the table are increases of 7.5% in 2017 with an increase of CPI plus 1.5% in 2018.

Fast-Moving Consumer Goods (FMCG) Sector

The identical deal is on the table in FMCG as with glass.

Pharmaceuticals Sector

This is the same as the previous two.

Kumba Iron Ore

Here, the parties to the negotiations have signed a three-year wage agreement. It was agreed that they will make a once-off payment of R25 065 for all employees who are covered by the agreement.

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