COVID-19: Clothing industry reaches agreement on payment of wages
An collective agreement by the Bargaining Council for the Clothing Manufacturing Industry regarding the payment of wages to employees in the clothing sector during the national lock down to combat the spread of the Coronavirus, has been extended to non-parties in the industry by the Minister of Employment and Labour, with effect from 26 March 2020.
The primary aim of this agreement is to ensure that workers are not left to face the lock down period without income. The clothing manufacturing industry agrees that it cannot be left up to government alone to address the impact of the lock down on industry and employees and will play a supportive role in this effort.
This agreement is in effect as of 26 March 2020 and determines that employers in the industry and the Unemployment Insurance Fund (UIF) will take turns to pay the employees’ weekly wages for a provided 6-week period despite the lock down period being only 3 weeks long.
Payments will be scheduled as follows:
Week 1
The employer will pay deferred wages for work performed during the week prior to the lock down.
Week 2
a – The employer will pay deferred wages for work performed during the week of the lock down,
b – The balance of the wages will consist of workers’ funds received from the UIF in cases where the lock down started before a full week’s work was performed.
Week 3
The employer will pay a full week’s wages.
Week 4
Worker’s funds from the UIF will pay a full week’s wages.
Week 5
The employer will pay a full week’s wages.
Week 6
Worker’s funds from the UIF will pay a full week’s wages.
All payments due to employees from the employer during the first two weeks shall be paid to employees, irrespective of whether funds were received from the UIF. All normal statutory deductions shall also continue to be effected during this 6-week period.