The importance of sector level collective bargaining
The right to collective bargaining is enshrined in the constitution of the Republic of South Africa which also has a long tradition of industry bargaining. The LRA promotes sectoral bargaining through the establishment of Bargaining Councils for setting of minimum wages, employment conditions and benefits across an industry. Sectoral bargaining provides social protection, especially for vulnerable workers. It also benefits employers by limiting destructive wage competition and strengthening coordination at an industry level. Clause 9 of Council consitution allows the Council to establish industry chambers for each of the sectors in its registered scope. These chambers consist of an equal number of representatives from Employer Organisations and Trade Unions who are members of the Council. Industry Chambers may conclude collective agreements for the whole sector on a range of issues including minimum wages and actual wage increase. Industry Agreements are applicable to the members of the trade unions and employer organisations represented in the chamber. Provided they are sufficiently representative, the parties may also request the Minister of Employment and Labour to extend these collective agreements to all employers and workers in that sector who are not members of the parties
The Pulp and Paper Sector
The Chemical, Energy, Paper,Printing, Wood and Allied Workers Union ( CEPPWAWU) and the Employers Association for the Pulp and Paper Industry ( EAPPI) are the main parties represented in the Pulp an Paper chamber. They have concluded an Industry Wage Framework Agreement which sets parameters for company level bargaining at the main pulp and paper producers including (SAPPI , MONDI AND MPACT)
The Sawmilling Sector
The chamber is inactive following the deregistration of the Employers Association of the Sawmilling Industry . However a multi employer wage agreement is concluded annually between some of the larger employers and CEPPWAWU. Although this agreement is not applicable to non parties, it provides a guideline for minimum wages and conditions of employment for all companies in the sector.
Other Sectors
There are currently no sectoral wage agreements applicable in the Fibre & Particle Board as well as the Tissue & Allied products sectors. Wages are determined at company level for some of the larger employers. All companies must comply with the Basic Conditions of Employment Act and Minimum Wage Act are applicable
Resources and Links
Industry Statistics and Trends
BCOE and the National Minimum wage