New wage agreement offers relief for South Africa's plastic industry workers

The National Union of Metalworkers of South Africa (Numsa) has welcomed the signing of an above-inflation wage agreement as part of the Plastic Industry Main Collective Agreement (PIMCA). With inflation currently at 2.8%, the multi-year deal in the plastics sector exceeds this rate.

Numsa, representing the majority of the approximately 34 000 workers nationally in this sub-sector of the Metals Engineering Industries Bargaining Council (MEIBC), signed the agreement alongside several employer associations. These include the Plastics Convertors Association of South Africa (PCASA), Cape Engineers and Founders Association (Cefa), KwaZulu-Natal Engineering Industries Association (KZNEIA), Light Engineering Industries Association (Leia), and the National Employers Association of South Africa (Neasa).

NUMSA called the agreement a victory, especially during challenging economic times, as it offers wage increases above inflation to help cushion workers and their families against the rising cost of living. The agreement runs from July 1, 2025 to 30 June 30, 2028 and includes wage increases of 7% from July 1, 2025 to June 30, 2026, followed by 6% increases in each of the next two years.

Numsa General Secretary Irvin Jim said: “We think that we have been able to secure a settlement in the best interest for workers. It is a victory for plastic workers. It has been very difficult to handle negotiations in the past because we experienced major challenges. We have combined our militancy, and thinking outside the box to secure a decent settlement for workers from employers.”

The parties have committed to “achieve the gazettal and extension of the agreement to all parties and all non-parties and employees covered by the scope of the plastic agreement,” with employers pledging to support the union in extending the agreement to non-parties.

Some issues remain outstanding and will be addressed separately, including housing assistance. The agreement states: “Any arrangement made available to the industry through MIBFA funds, shall be extended to employees within the Plastic industry as defined.” This means that any final agreement on housing assistance in engineering, funded through the Metals Industries Benefit Funds Administrators (MIBFA), will also apply to plastics workers.

Regarding medical insurance, the plastics sector will take part in ongoing discussions at MEIBC. On grading and entry rates, a committee will be formed to review these based on “scientific models, appropriate modalities and expert input.” The plastics industry has also committed to explore how the Sick Pay Fund can support workers affected by excessive short-time and layoffs.

Numsa thanked its officials, shop stewards, and the entire negotiation team for their efforts, stating that without them the agreement would not have been possible. The union also called on all plastics industry workers to join the organisation, noting that it continues to negotiate better wages and conditions for workers.