In terms of the two-year wage agreement that was reached, employees will receive a wage increase of 9,5% this year, implemented retrospectively from 1 July this year. In addition, employees will also receive a 0,5% increase in January 2010, based on salaries as in June this year.

For the second year of the wage agreement, there was agreed upon an increase of consumer price inflation (CPI) plus 1,5% in July 2010. A further 0,5% increase, based on salaries in June 2010, will be granted in January 2011.

“A protection clause for the July 2010 increase was built into the agreement, which will ensure that employees do not receive an inferior increase in the second year of the agreement,” Solidarity spokesperson Jaco Kleynhans explained. “In terms of the clause, employees will receive an increase of no less than 7,25% in the second year if the CPI drops below 5,75%.”

Negotiations between trade unions and employers regarding issues such as shift allowances and job security will now continue at plant level.