Leather Industry Agency Shop Amending Collective Agreement Extended to Non Parties
The Department of Employment and Labour published Government Notice R.7014 in Government Gazette No. 53984 of 23 January 2026, confirming the extension of the National Bargaining Council for the Leather Industry (NBCLI) Agency Shop Amending Collective Agreement to non‑party employers and employees within the sector.
The agreement is applicable only to employees for whom wages are prescribed in any of the Main Agreements of the Council.
The extension ensures that the terms of the amended Agency Shop Agreement – previously binding only on parties to the NBCLI – now apply across the defined scope of the leather industry. This measure is aimed at promoting stability, fairness, and equitable funding of collective bargaining processes in the industry.
Purpose of the Agency Shop Amendment
The amended agreement regulates the payment of an agency fee by employees who are not members of the majority trade union(s) but who nevertheless benefit from collective bargaining outcomes.
The extension:
- Ensures that non‑union employees contribute fairly to the cost of collective bargaining.
- Supports the sustainability of sector‑wide bargaining structures.
- Aligns the obligations of non‑party employers and employees with those of parties to the council.
Effect of the Extension
With the agreement now legally extended:
- All employers falling within the Council’s registered scope must deduct the prescribed agency fee from the wages of eligible employees.
- Non‑union employees are required to pay the fee but do not gain union membership or voting rights by doing so.
- Employers must remit agency fees to the NBCLI in the manner and timelines stipulated in the agreement.
The prescribed agency fee is 1% of the employee’s basic wage, but not exceeding R25.20.
The extension is expected to improve administrative consistency across the sector, reinforce the legitimacy of centralised bargaining, and ensure that the costs of negotiating industry‑wide conditions of employment are shared broadly among those who benefit.
The notice takes effect from 2 February 2026 and remains in force until 30 June 2027.
