The Southern African Clothing & Textile Workers' Union has settled its 2014 annual round of wage negotiations for the leathergoods manufacturing sector.

The settlement was reached during wage negotiations conducted under the auspices of the National Bargaining Council of the Leather Industry of South Africa and  involves a 7.5% increase in minimum wages, plus an increase in the holiday bonus of one extra day's pay.

This agreement will benefit 2,000 workers in 84 general goods and handbags factories, and will come into effect on July 1.

Local reports say the country’s footwear sector has gone on strike demanding the same, affecting about 165 companies.

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