Employment in South Africa’s construction industry increased by 39,000 in the second quarter of 2026 (Stats SA, Quarterly Labour Force Survey, Q2 2026), making construction one of the industries to record employment growth during the period. Construction, of which the building industry forms a significant part, remains an important contributor to employment and economic activity.

In the Western Cape’s building industry, the Building Industry Bargaining Council (BIBC) brings employer organisations and trade unions together through collective bargaining. Its latest compliance indicators point to measurable improvement, with stronger stakeholder engagement, employer education and targeted enforcement contributing to the shift.

According to the BIBC, employer submissions of benefit contributions increased by 16% in 2026 compared with the same period in 2025, while new employee registrations rose by 39% and new employer registrations by 3%. Employee benefit statements accessed through its WhatsApp channel increased by 35.6%. Compliance levels also increased by 20% in the first month of the August-to-October quarter compared with the same period in 2025, although compliance status remains dynamic and can change as different criteria are assessed.

For Danie Hattingh, spokesperson for business at the BIBC, the improvement in compliance indicators reflects a broader shift in the industry, with larger contractors increasingly taking compliance into account when managing their own risk.

“The industry has finally shaken off the effects of the COVID-19 pandemic, as we see the industry returning to, and exceeding, pre-COVID levels,” says Hattingh. “It also reflects that most of the larger contractors are becoming more serious about mitigating their own risk by contracting only with compliant sub-contractors.”

The improvement is not being driven by enforcement alone. Greater cooperation between employers, industry bodies, government departments and enforcement agencies has strengthened the response to non-compliance. The BIBC has participated in four joint operations led by the Department of Employment and Labour since November 2025. As a key participant in this collaborative forum, known as the High Impact Inspection Task Team (HIITT), the BIBC is able to fulfil its own regional mandate while supporting this national initiative. These operations address several employment-related violations, including health and safety, immigration and labour law.

Education and engagement are also contributing to greater awareness. Website sessions increased by 48%, while large contractors are increasingly inviting BIBC representatives to information-sharing opportunities with subcontractors working on their sites. These engagements focus on employment obligations and fair, non-exploitative practices.

Hattingh says the change is becoming visible in the behaviour of employers themselves.

“The efforts from multiple stakeholders, including the BIBC, in educating the industry regarding fair and non-exploitative employment practices, appears to be bearing fruit,” he says. “We are also seeing a significant increase in compliant employers engaging with us when they are compromised by employers who contravene labour laws.”

The benefits extend beyond regulatory compliance. For workers, compliance supports agreed wages and employment conditions, retirement and statutory benefits, occupational health and safety and other employment protections. For compliant contractors, consistent enforcement helps reduce the commercial disadvantage created when competitors avoid their obligations.

There is also a broader link between employment standards and construction outcomes. A more professional labour environment can help reduce disputes, disruption, safety incidents, reputational risks and unexpected labour-related costs, while supporting the delivery of quality infrastructure. This makes compliance relevant not only to employers and employees, but to businesses commissioning construction work and the wider construction sector.

A tangible example of this shift is the City of Cape Town’s procurement process, where BIBC compliance is now a minimum requirement for construction tender applications following sustained engagement. This creates a clearer link between compliance and access to work, reinforcing the principle that meeting employment obligations is part of operating competitively in the formal industry.

For Hattingh, the next challenge is to turn the current improvement into a lasting change in industry culture.

“The biggest opportunity is to turn the recent improvement in compliance into a permanent culture of compliance across the building industry,” he says.

Future indicators will include increased voluntary employer registrations, fewer enforced registrations, higher benefit contribution submissions and stronger compliance among main contractors and subcontractors. The direction of travel will ultimately be measured not only by enforcement activity, but by whether compliance becomes an accepted condition of doing business.

“Success for the BIBC is inextricably linked to the success of the building industry,” Hattingh says.