As in previous years, foreign-owned factories
in the Newcastle area of KwaZulu-Natal
(KZN) are challenging the wage rates set
by the National Bargaining Council (NBC).
Where Impahla is subject to minimum
wages that exceed R833 per week for
machinists, the Newcastle operators are
threatening to relocate jobs out of South
Africa if they cannot be permitted to pay
less than R350 per week. Their argument is
that by placing factories in more rural areas,
they should be allowed to pay substandard
wages, regardless of whether or not their
wage rates can be viewed as a living wage.