AMEO yields to Numsa’s demands


This past Friday (14 October), the National Union of Metalworkers of South Africa (NUMSA) signed an above-inflation wage agreement with the Automobile Manufacturers Employers Organisation (AMEO) that will see workers in the automotive industry receive an 8.5% increase.

LFP 1069

AMEO represents motor manufacturers such as Mercedes Benz, BMW, Nissan, Toyota and Volkswagen, while NUMSA is the country’s biggest union with over 400 000 members.

According to the deal that was signed at the National Bargaining Forum, the workers will receive the 8.5% increase in the first year followed by a 7% increase in both the second and third year of the three-year deal, which will be valid until 30 June 2025.

In addition, each employee will also receive a taxable one-off gratuity payment of R10 000.

The union said that workers could expect back pay from July to September at the end of this month.

In August, NUMSA rejected AMEO’s offer of a 6.2% increase in year one, followed by an increase of 5.6% in year two and 4.7% in year three.

In the statement NUMSA released to announce the agreement, they said that it was “significant that we have maintained the standard for the sake of workers and their families, when other unions are encouraging members to sign agreements and settle with (sic) 3%”.

More Industry News stories

JRA to give its input at the Smarter Mobility Africa summit

JRA to give its input at the Smarter Mobility Africa summit

The Johannesburg Roads Agency (JRA) announced its participation in the sixth annual Smarter Mobility Africa summit, which kicked of 1 October and continues till the 4 October at the Gallagher Convention Centre in Johannesburg.

  • 3 October 2024
Economy remains challenging, despite refreshing green shoots

Economy remains challenging, despite refreshing green shoots

A modest increase in passenger car sales in an overall market that continued its downward trend in September 2024 offered hope that the market may be slowly turning, says National Automobile Dealers Association (Nada) national chairperson, Brandon Cohen.

  • 2 October 2024
SA, Thailand compare notes on NEVs, manufacturing

SA, Thailand compare notes on NEVs, manufacturing

The National Association of Automotive Component and Allied Manufacturers (NAACAM), in partnership with the Toyota Wessels Institute of Manufacturing Studies (TWIMS), held a breakfast seminar for NAACAM members and key stakeholders from the public and private sector.

  • 2 October 2024