The Electrical Contracting Industry is forced to go into negotiations to determine wage increases for 2026. When we entered into a 6-year wage agreement, we did so to avoid having to lock horns in the negotiations room for the length of the agreement. We also knew that there were certain risks that may force us to negotiate to adequately respond to realities that may be significantly different from those that were prevailing at the time the long-term collective agreement was signed. One of the key considerations is the Consumer Price Index (CPI). We decided to protect both employees and employers from the adverse effects of CPI. We agreed that should the CPI be above 9%, we will negotiate to find agreement on an increase that would not be too burdensome to the employer. We also agreed that should the CPI be less than 4% we would negotiate wages to find a sweet spot where the increases would not be so low that they would result in employees getting too little an increase.
We base our increases on the August CPI of this year even though the actual increases will be implemented on 01 March 2026. The CPI figure has come out, and it is 3.3%. Because this figure is less than 4%, we are going to have to negotiate. A figure below 4% triggers negotiations in the same way as the figure above 9%.
In the next few weeks, we will be consulting with the industry a various consultation forum across the country to establish a mandate. The representative trade union will share what their wage demands are and will meet with them for clarity and planning of the negotiations programme on 15 October 2025.
We cannot start negotiations without consulting with employers. When we say employers, we include those employers that are not members of the ECA(SA) as well. Their voice is as much important as those of our members. Of course, we would prefer them to join the Association so as they also bring their wisdom on other matters of importance to every employer.
Please be on the lookout for invitations to various venues to consult around wage increases. We would like to negotiate about other matters of common interest but at this point the only aspect that we can negotiate about is wages. We structured the Collective Agreement that way because we wanted the rest of the conditions of service not to be affected if we must negotiate wages. All other aspects relating to employment conditions will be negotiated at the expiry of the Main Collective Agreement. Closer to the time we will come to the industry to establish what changes to the conditions of service are desired.
The nature of negotiations is that they are characterised by a spirit of give and take. We compromise and so do the other party. We do not there to win and get the other party to lose. We seek to find a sweet spot with the understanding that the other party must also go away with something appreciable for the people you employ as employers, members, and non-members alike. I am looking forward to meeting you as we consult with the broader industry.
