Johannesburg – The National Union of Metalworkers of South Africa (NUMSA) has announced it signed an above-inflation agreement as part of the Plastic Industry Main Collective Agreement (PIMCA).
“Inflation is currently at 2.8% and the multi-year agreement signed in the plastics sector is above that,” NUMSA said in a statement made available to The Bulrushes on Monday, 9 June 2025.
The parties to the agreement include NUMSA as the union representing the majority of workers.
This sector represents approximately 34 000 workers nationally and it is a sub-sector of the Metals Engineering Industries Bargaining Council (MEIBC).
The employer associations that signed the agreement include 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).
“This is a victory for the union because even during these challenging economic times, NUMSA negotiates increases above inflation, in an attempt to cushion the workers and their families against the negative impact of the high cost of living,” the statement said.
The agreement is broken down in the following way:
- Effective from 1 July 2025 to 30 June 2026 an increase of 7 % will be implemented.
- Effective from 1 July 2026 to 30 June 2027 an increase of 6% will be implemented.
- Effective from 1 July 2027 to 30 June 2028 an increase of 6% will be implemented.
The agreement applies from 1 July 2025 and expires on the 30th of June 2028.
Commenting on the agreement, 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”.
Jim said the parties were 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”, as per the settlement.
He said employers say they will stand with the union to ensure that the agreement is extended to non-parties.
There are outstanding issues which will be dealt with separately, including the issue of housing assistance.
The agreement states that, “Any arrangement made available to the industry through MIBFA funds, shall be extended to employees within the Plastic industry as defined”.
This means that whatever is finally agreed to on housing assistance in engineering, using funds from the Metals Industries Benefit Funds Administrators, (MIBFA) will also be extended to workers in Plastics as well.
On the issue of Medical insurance, Jim said the Plastic industry will engage in discussions on that which are currently taking place at MEIBC.
He said on grading and entry rate, the agreement states that a committee will be established to review grading and entry rates based on, “scientific models, appropriate modalities and expert input”.
“The plastic industry has also committed to look into how the Sick Pay Fund can be utilized to accommodate employees who are exposed to excessive short-time and lay-offs,” the statement said.
“NUMSA wishes to thank its officials, Shopstewards and the entire negotiation team for working hard to secure this settlement, because without them, this agreement would not have been possible.
“We call on all workers in the plastics industry to join NUMSA because we continuously negotiate better wages and conditions for workers.”
