South Africa’s tanning industry has agreed on a 5% wage increase for 2026, concluding the final outstanding collective bargaining negotiations under the National Bargaining Council of the Leather Industry of South Africa (NBCLI).
The tanning sector had been the last unresolved segment of the country’s leather industry after wage agreements for the footwear and leather goods sectors had already been concluded earlier this year. Several previous negotiation rounds had ended without agreement before the parties reached the current settlement.
Details regarding the duration of the agreement, the affected wage categories and the number of participating companies have not been publicly verified.
For international buyers of South African wet-blue and crust leather, the agreement provides greater certainty over production continuity. South Africa remains an important supplier to the European automotive and upholstery leather industries, and the settlement significantly reduces the risk of labour disruptions during the second half of the year.
