The National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI) has announced a new two-year wage agreement covering March 2025 to February 2027.
This deal was reached through negotiations between unions, including the Motor Transport Workers Union of South Africa (MTWU) and the South African Transport and Allied Workers Union (SATAWU), and employer groups such as the Road Freight Association (RFA) and the National Employers’ Association of South Africa (NEASA).
Under the agreement, workers will see Across-The-Board (ATB) wage increases aimed at strengthening income levels across the industry.
For the first year, running from 1 March 2025 to 28 February 2026, all employees up to Paterson Grade B4 will receive a 7% increase, while those in Grade C1 will get a 6% rise.
In the second year, covering 1 March 2026 to 28 February 2027, these employees will receive a 6% and 5% increase, respectively.
In addition to wage adjustments, the agreement introduces ATB-aligned increases for various key allowances, with a 7% boost in the first year and a 6% increase in the second.
This applies to consolidated, night shift, subsistence, cross-border, and dangerous goods allowances.
Extension to Non-Party Employers
Importantly, this agreement will not only apply to members of the employer associations involved in the bargaining process. Under Section 32 of South Africa’s Labour Relations Act, the Minister of Employment and Labour has extended the agreement to non-party employers as well. Here’s a breakdown of how this works:
Who are Non-Party Employers?
Non-party employers are companies operating within the road freight and logistics sector that were not directly involved in the negotiations. These businesses are not members of the bargaining council’s employer associations (like the RFA or NEASA) but still fall within the defined scope of the NBCRFLI.
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Why Extend the Agreement?
Extending the agreement to non-party employers is designed to promote fair competition and equitable treatment of workers across the industry. This prevents companies outside the bargaining process from undercutting wages or allowances, ensuring consistency in employee remuneration and benefits.
How Does It Affect Non-Party Employers?
Non-party employers are legally obligated to implement the same wage and allowance increases as those agreed upon by the bargaining parties. This ensures that all employees in the industry, whether working for a member or non-member company, receive the same benefits and protections.
Industry Impact and Labour Stability
The NBCRFLI commended all parties for their commitment to this agreement, which is expected to support ongoing labour stability in the road freight sector. Since the last industry-wide strike in 2012, the sector has maintained a record of industrial peace, supporting dependable logistics services across South Africa’s supply chains.
The new wage agreement, set to take effect in March 2025, is expected to provide fair wage growth and support for workers while fostering sustainable growth in South Africa’s road freight and logistics sector.
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