Clothing factories belonging to the Newcastle Chinese Chamber of Commerce have begun implementing a new wage structure that ensures none of their employees earn less than R200 a week.

According to Business Reports, while in most categories wages were still below the prescribed minimum wage of R324 a week, the chairman of the chamber Alex Liu said employers were trying to show they were committed to complying to a wage structure “that is sustainable”.

There was no agreement yet on what the companies had proposed and a meeting would be held next month with Minsiter of Economic Development Ebrahim Patel to chart a way forward in the matter.

Last month, the chamber proposed that a general worker be paid R220 a week in rural areas, while in metro areas it should be R300 a week.

A rural-based unqualified machinist would pocket R250 a week while one living in a metro would walk away with R350. A qualified machinist from a non-metro area would earn R280 a week, while the metro-based counterpart would take home R450.

New, inexperienced and unskilled staff in non-metro areas should earn R200 a week in the first six months.

“We have been criticised because some of our members were found to be paying workers less than R200 a week and we are saying that cannot be tolerated,” Liu said.

Two months ago, the bargaining council began closing down factories that were non-compliant in KwaZulu-Natal and Free State.

These factories each owed workers between R635,000 and R2.6 million in underpaid wages.

This dispute led to a total shutdown in Newcastle.

Wayne van der Rheede, the deputy secretary-general of the Southern African Clothing and Textile Workers Union, said while the union appreciated the fact that the chamber had proposed increases in some of the wages, the employers were, however, still non-compliant.