9 September 2026

SUMMARY: The Association of Mineworkers and Construction Union (AMCU) welcomes the settlement of the sugar manufacturing and refining industry wage impasse. The agreement provides for an unconditional 6% across-the-board wage increase, backdated to 1 April 2026, together with a six-day ex gratia payment for permanent employees. Workers are returning to work from today, with all employees expected back by no later than 10 September 2026.

The Association of Mineworkers and Construction Union (AMCU) is elated that the protracted wage impasse in the sugar manufacturing and refining industry has finally been resolved. 

A Wage Negotiations Settlement Agreement was concluded yesterday, 8 September 2026, between the Sugar Manufacturing and Refining Employers Association (SMREA) and organised labour under the auspices of the National Bargaining Council for the Sugar Manufacturing and Refining Industry (NBCS). 

The agreement covers all employees in the bargaining unit from grades A2 to C3. 

“This settlement brings an end to a difficult period for workers and their families”, said AMCU President Joseph Mathunjwa. “The workers stood together and refused to allow the challenges facing the sugar industry to be placed on their shoulders”, he added. 

In terms of the settlement, employees will receive an unconditional 6% across-the-board wage increase, backdated to 1 April 2026. 

The agreement represents an improvement on the employers’ previous offer of 5,4%, together with a further 0,6% which had been made conditional upon a future government decision regarding sugar import tariffs. The final 6% increase is not linked to any such condition. 

“Workers cannot pay for food, electricity, transport and school fees with promises which depend on a future decision by government”, Mathunjwa said. “The 6% increase is now guaranteed and backdated. That is an important achievement secured through the unity and determination of the workers”, he explained. 

Permanent employees will also receive an additional once-off ex gratia payment equivalent to six days. Employees will further be entitled to apply for up to six days’ annual leave, subject to their available leave balance and the applicable payroll cut-off date. 

All backpay arising from the wage increase must be paid by no later than 18 September 2026. 

“The six-day ex gratia payment and the backdated wage increase will provide some immediate relief to workers who have carried the financial burden of this dispute”, Mathunjwa said. “This is not a favour from the employers. It is a product of collective bargaining and the sacrifices made by workers during the strike”, he stressed. 

Employees are returning to work from 9 September 2026 in accordance with the operational requirements of the respective companies. All employees must return to work by no later than 10 September 2026, with the specific arrangements to be communicated by each employer. 

AMCU calls upon all employers to facilitate an orderly return to work and to refrain from any victimisation or retaliation against workers for participating in lawful and protected industrial action. 

“Workers exercised a constitutional right in defence of their wages and livelihoods”, Mathunjwa said. “The return to work must therefore take place in an atmosphere of respect, without intimidation, punishment or attempts to divide the workforce”, he added. 

The settlement will remain effective from 1 April 2026 until 31 March 2027. Any dispute arising from its interpretation or application must be resolved in terms of the applicable collective agreement and the Constitution of the NBCS. 

The Union recognises that the settlement was reached against the backdrop of a severe crisis in the South African sugar industry, including the threat posed by subsidised imports, declining local sales and the instability surrounding Tongaat Hulett. 

On 17 February 2026, AMCU issued a media release titled “AMCU Warns of National Disaster as Tongaat Hulett Faces Liquidation”, warning that the collapse of domestic sugar production would devastate workers, growers and rural communities. 

The Union warned that allowing local mills to close while imported sugar from Brazil, India and Thailand continued to enter the South African market would amount to exporting South African jobs and importing dependency. 

“The problems confronting the sugar industry were not created by the workers”, Mathunjwa said. “Government’s failure to protect local production and the conduct of companies which import cheap foreign sugar cannot be used as an excuse to suppress wages”, he emphasised. 

Sugar has formed part of South Africa’s agricultural and industrial base for generations. The industry supports growers, mill workers, refinery workers, transport workers, contractors, small businesses and rural communities, particularly in KwaZulu-Natal and Mpumalanga. 

The wage settlement must therefore be followed by urgent government action to protect the long-term sustainability of the industry. It is again demanded that the Department of Trade, Industry and Competition and the Department of Agriculture strengthen import-protection measures and prevent subsidised foreign sugar from displacing South African production. 

“We are pleased that the wage impasse has been resolved, but the broader struggle to protect the sugar industry is far from over”, Mathunjwa said. “Workers need decent wages, and they need secure jobs and functioning mills. We cannot stand for a situation whereby the industry is allowed to collapse”, he added. 

AMCU commends its members and all sugar workers for the discipline, courage and unity demonstrated during the industrial action. The Union also acknowledges the collective efforts which made the settlement possible. 

“This agreement confirms that workers achieve progress when they stand together”, Mathunjwa said. “The 6% increase, the backpay and the six-day ex gratia payment were not secured through silence. They were secured through worker unity, sacrifice and collective action. We welcome the settlement, we salute the workers, and we now demand that government protect the industry upon which their livelihoods depend”, Mathunjwa concluded. 

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For more information or media interviews, contact AMCU President Joseph Mathunjwa.