The National Bargaining Council for the Chemical Industry (NBCCI) says wage negotiations for 2025 to 2028 have been successfully concluded across four sectors, with a 5.5% increase secured for the year to June 30, 2026, and a 6% increase for the year after.

The fast-moving consumer goods (FMCG), glass, pharmaceutical and petroleum sectors in the chemicals industry participated in the negotiations.

In the petroleum sector, trade unions the Chemical, Energy, Paper, Printing and Allied Workers Union (CEPPWAWU), South African Chemical Workers Union (Sacwu) and Solidarity have signed a three-year agreement with the National Petroleum Employers Association.

Despite the current economic climate, parties secured an above-consumer price inflation (CPI) increase, which underscores the employers' commitment to stability, growth and decent wages.

The agreement was for a 5.5% increase from July 1, 2025, to June 30, 2026; and a 5.5% increase plus an additional 0.5% in January 2027. The increase for the final year from July 1, 2027, to June 30, 2028, would be on a CPI-based sliding scale.

Meanwhile, at a post-bargaining conference on August 13, petroleum sector parties committed to using the next three years to address broader employment conditions, including the impact of the Fourth Industrial Revolution (4IR).

“With a Department of Employment and Labour certificate of representation in place, the agreement is expected to be extended to non-parties in due course. The successful negotiations also mark another step towards our strategic goal of transitioning from voluntary to mandatory bargaining,” the NBCCI notes.

Further, in the glass sector, CEPPWAWU, the National Union of Metalworkers of South Africa (Numsa), Sacwu and Solidarity signed a two-year agreement with the Glass Industry Employers Association.

The agreement was for a 5.5% increase from July 1, 2025, to June 30, 2026; a 5.5% increase in the following year; and an additional 0.5% increase in January 2027.

The sector continues to make progress on socioeconomic priorities such as path to zero-harm, just transition and adapting to the 4IR. It is also the first to extend its agreement to non-parties, says the NBCCI.

Meanwhile, the pharmaceutical sector was the only sector in the chemicals industry in which all five unions, CEPPWAWU, General Industries Workers Union of South Africa (Giwusa), Sacwu, Numsa and Solidarity, participated this year.

This sector also includes roles designated as essential services, which means that affected employees cannot strike even during protected strikes.

The unions reached a two-year agreement with the Labour Affairs Association of the Pharmaceutical Industry, effective from July 1, 2025, to June 30, 2027, for a 5.5% increase in the first year plus an additional 0.5% in January 2027, and a 5.5% increase in the following year plus an additional 0.5% in January 2028.

In the FMCG sector, CEPPWAWU, Giwusa and Solidarity reached a two-year agreement with the FMCG Employers Association, effective from July 1, 2025, to June 30, 2027, with a 5.5% increase in the first year and a 6% increase in the subsequent year.

“The dedication of all negotiation teams reaffirms our shared goal for innovative labour relations solutions. With agreement extensions, NBCCI strengthens its role in facilitating expeditious labour relations services through innovative solutions and collaboration between stakeholders in the chemical industry,” it says.