Sactwu reaches wage deal

Sactwu and employers have reached an agreement at the bargaining council in Cape Town.

Sactwu workers. Picture: EWN

CAPE TOWN - A national strike by some 50,000 workers in the clothing manufacturing industry has been averted.

On Monday, the Southern African Clothing and Textile Workers' Union (Sactwu) signed a wage deal with employers.

The union's Andre Kriel said, "We have agreed that an industry summit will be held. Key stakeholders will come together to examine what needs to be done to place the industry on a path of sustainable growth."

While unions believe a weaker Rand will help the sector, the Apparel Manufacturers of South Africa hold a different view.

The organisation's Ralph Roytowski said the cost of imported raw materials will increase.

"I think one will see the effects of the exchange rates coming through on pricing in the next four to six months. This will be detrimental to the consumer."