Why collective bargaining is essential for fair treatment and benefits in the building industry

The construction industry, with the building sector being a key player, was among six sectors driving the Western Cape’s economy in the third quarter of last year(Wesgro). 

Yet, in this fast-paced and labour-intensive field, workers’ needs are often overlooked, and many take jobs unaware of their rights. 

This is because some employers comply, while others do not. Collective bargaining is vital to securing fair treatment, benefits, and a safer future for thousands of building industry employees.

“Collective bargaining gives employees a voice,” explains Danie Hattingh, spokesperson for business at the Building Industry Bargaining Council (BIBC).

“It ensures that workers are not at the mercy of individual employers’ decisions on pay or conditions but instead benefit from industry-wide agreements that set fair and consistent standards.”

The BIBC is a collaborative body formed by employer organisations and trade unions under the Labour Relations Act to negotiate employment terms in the building industry in its area of jurisdiction.

“A common misconception is that BIBC registration is optional,” Hattingh adds.

“But once the collective agreement is gazetted and extended, it becomes legally binding on all building industry employers and employees in the BIBC’s area of jurisdiction, which covers the Cape Peninsula and surrounding areas, stretching from Pearly Beach through the Boland to Riebeeck West and westwards to the Yzerfontein area, whether they signed it or not.” 

Registered employees with the BIBC gain access to a comprehensive package of financial and non-financial benefits that would be difficult, if not impossible, to secure individually.

The financial benefits include:

• Fair wages: Industry-standard pay rates set through collective agreements.
• Holiday pay & bonuses: Lump-sum payouts in December from dedicated funds, giving workers financial security during the annual shutdown.
• Retirement savings: Employer and employee contributions to a pension fund, including death, disability, and funeral benefits.
• Sick pay: Payments during periods of illness, with contributions to other funds maintained.

Many see benefits like holiday pay and pensions as mere deductions and burdens. Rather, they are compulsory contributions that protect employees from irregular, low payments and help build long-term security.

“These are not just numbers on a payslip,” says Hattingh. “They are safety nets for your health, your family, and your future.”

The non-financial benefits include:

Standardised working hours and conditions, protecting employees from exploitation.

Access to formal dispute resolution through the BIBC’s mediation and arbitration services.

Greater job security through a level playing field that prevents undercutting on wages.

Without BIBC registration, workers are left exposed. They risk being paid below the legal minimum wage, missing out on essential benefits, and facing unfair treatment with little recourse.

Unregistered employers may offer slightly higher take-home pay in the short term, but as Hattingh warns, “That extra bit in your hand today quickly disappears. Without contributions to your pension, holiday fund, or sick fund, you could be left with nothing when you need it most, whether that’s at Christmas, in retirement, or during a personal crisis.”

One example of the BIBC’s role came during a review of the Expanded Public Works Programme (EPWP). The BIBC found skilled workers on commercial projects being paid EPWP rates, well below industry minimums and without benefits.

The BIBC intervened, securing back pay and full entitlements for those workers. It has also worked with government and industry stakeholders to clarify EPWP exemption guidelines, ensuring skilled workers receive proper wages and benefits.

“These interventions are not just about correcting a payslip,” says Hattingh. “They can change lives, helping workers and their families avoid financial hardship and plan for the future.”

Collective bargaining benefits not just employees, but also the industry as a whole. By standardising wages and conditions, it eliminates the incentive for unprincipled employers to undercut competitors by exploiting workers.

This fosters ethical business practices, attracts skilled labour, and reduces industry disputes.

“When everyone plays by the same rules, the industry becomes more stable and professional, benefiting all parties. And, as a key driver of the Western Cape’s economy, protecting workers in this vital sector is crucial to sustaining its positive impact,” says Hattingh.

Employee rights

Hattingh stresses the importance of employees knowing their rights and insisting on working for registered employers:

• Ask your boss if they are registered with the BIBC.
• Check your payslip to check for holiday, bonus, and pension fund deductions.
• Call, WhatsApp, email, or visit the BIBC with your personal details to confirm.
• Ask for a statement showing all your contributions.

“Collective bargaining is about more than wages,” concludes Hattingh. “It’s about dignity, fairness, and building a better life for you and your family. Registration with the BIBC is more than just a legal requirement. It is employees’ pathway to security, stability and respect in the workplace.”

Speaking at the 30th Annual Summit of NEDLAC, Employment and Labour Minister Nomakhosazana Meth, earlier this month, said that in the midst of declining employment rates and rising unemployment, social partners convened via NEDLAC needed to respond collaboratively to safeguard economic stability and shield workers and communities from being overlooked amid shocks.

The minister said solidarity is about workers uniting through collective bargaining and dispute resolution mechanisms.

“It is about protecting vulnerable workers-including those in non-standard and informal employment, ensuring no one is left behind. It is also about  social cohesion, recognising that the prosperity of one sector must not come at the exclusion of another.” 

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