Benchmarks of stability: why bargaining councils matter

by Media Xpose

Bargaining Councils are the unsung architects of fairness and stability in South Africa’s furniture industry. They uphold ethical labour practices, level the playing field and, with SAFI leading the charge, shape a more competitive future.

In a sector defined by craftsmanship, innovation and resilience, stability is the unsung hero of success. For the South African furniture industry, that stability rests increasingly on the foundational role of Bargaining Councils (BCs), a mechanism that ensures fair labour practices, protects businesses and workers alike, and bolsters long-term growth. The South African Furniture Initiative (SAFI) is championing renewed commitment to BC registration, working closely with stakeholders to raise awareness and drive compliance.

“Bargaining Councils are not just a statutory requirement – they’re a cornerstone of ethical business and a thriving industry,” says Greg Boulle, CEO of SAFI. “They offer a structured platform for dispute resolution, wage agreements and improved working conditions, which in turn create a more competitive and sustainable industry.”

The role of bargaining councils in safeguarding the sector

Bargaining Councils are established under the Labour Relations Act to serve as a formal forum for employers and trade unions within a particular industry to negotiate and regulate employment terms. For furniture manufacturers, especially small and medium-sized enterprises, BCs provide an accessible and affordable way to address industry-specific challenges and foster a level playing field.

From wage structures and skills development, to grievance procedures and employment equity, BCs offer frameworks that protects both businesses and their workers. “Without such councils, we’re left with fragmented labour practices that weaken the industry and expose manufacturers to unnecessary risk,” explains Boulle. “By supporting BCs, we’re ensuring that everyone – from factory floor to boardroom – benefits from a more predictable and fair environment.”

Driving compliance through awareness

Despite the clear benefits, SAFI has found that many manufacturers remain unaware of the importance of BC registration or are daunted by the administrative process. To address this, SAFI has launched a series of campaigns and one-on-one engagements aimed at increasing compliance across the sector.

“In 2024, we found that a significant number of employers who were paying Skills Development Levies (SDLs) were not compliant with Workplace Skills Plans,” says Boulle. “Our job is to close that gap by offering practical support and resources to help companies get on board.”

SAFI’s initiatives include:

  • Detailed communications explaining the BC mandate,
  • Online sessions that walk manufacturers through registration and funding application processes,
  • Partnerships with education and training institutions to ensure that new industry entrants understand their obligations from day one.

Building the case for industry stability

Stability in the furniture manufacturing sector has wide-reaching implications – not just for local businesses, but for South Africa’s broader economic development, exports and job creation goals. A robust BC framework provides confidence to investors, enhances international competitiveness and ensures alignment with local content and transformation strategies laid out in the Furniture Industry Master Plan (FIMP).

“We’ve seen what instability does to value chains – just look at what happened during the pandemic,” notes Boulle. “Bargaining Councils give us the resilience to absorb shocks and adapt with confidence. They are the glue holding our progress on skills development, transformation and localisation together.”

Supporting skills and upliftment

In tandem with its BC advocacy, SAFI has been instrumental in driving occupational training and accreditation across the industry. Programmes such as the Learning and Development Facilitator Training and the second round of Skills Development Facilitation Practitioner Qualifications underscore SAFI’s commitment to a professional, future-fit workforce.

The organisation is also proactively addressing gaps through Recognition of Prior Learning (RPL), enabling veteran employees to formalise their skills. In doing so, it is facilitating partnerships between accredited training providers and manufacturers to build capacity across the country.

“These efforts align directly with what Bargaining Councils aim to do – elevate standards, empower workers and professionalise the industry,” Boulle adds. “When manufacturers see the synergy between BC registration and their broader business goals, they realise it’s not just a compliance issue – it’s a smart business move.”

As the local furniture industry looks to scale, expand exports and compete in a global marketplace, ensuring sector-wide adherence to fair labour frameworks is non-negotiable. SAFI encourages all manufacturers – whether well-established or just starting out – to join the collective push toward a stable and inclusive future.

“Registering with a Bargaining Council is not about ticking a box,” says Boulle. “It’s about choosing to be part of a system that protects your business, values your people and strengthens your industry. The sooner we embrace that, the sooner we unlock our full potential.”

For assistance with Bargaining Council registration or more information about SAFI’s compliance support programmes, contact Lynn Adonis on safi.admin@furnituresa.org.za.

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