Plastic Industry Workers to Get Wage Hike above Inflation

NOMAZULU MOYO|June 9, 2025

NUMSA secures three-year deal despite tough economy.

***WAGE INCREASE: The National Union of Metalworkers of South Africa (NUMSA) has secured wage increases above inflation for workers in the plastics sector. Photo: NUMSA***

Workers in South Africa’s plastics sector will receive wage increases above inflation after a new agreement was signed between the National Union of Metalworkers of South Africa (NUMSA) and employer associations.

Inflation currently stands at 2.8%, but under the new deal, workers will receive wage increases of 7% in the first year, followed by 6% in the second and third years. The agreement covers the period from 1 July 2025 to 30 June 2028.

The plastics sector, which is part of the Metals Engineering Industries Bargaining Council (MEIBC), employs about 34,000 people nationally.

The deal was signed by NUMSA and several employer bodies, including 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).

In a media statement, 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.”

According to the statement, employers have also agreed to support the extension of the agreement to non-signatory parties and employees within the industry.

Some issues remain unresolved. These include housing assistance, medical insurance, entry-level wage rates, and the use of the Sick Pay Fund for workers frequently placed on short time or temporary layoffs.

On housing, the agreement notes that any housing support approved through the Metals Industry Benefit Funds Administrators (MIBFA) for the engineering sector will also apply to plastic workers.

Medical insurance discussions are ongoing at MEIBC, and a joint committee will be formed to review grading and entry-level pay using expert analysis. The Sick Pay Fund will also be reviewed to see if it can assist workers with unstable working hours.

NUMSA urged more workers to join the union, saying it continuously negotiates for improved wages and working conditions.

“We call on all workers in the plastics industry to join NUMSA because we continuously negotiate better wages and conditions for workers,” the union said.