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.
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%”.
President Cyril Ramaphosa has expressed strong confidence in South Africa's automotive industry, stating it is making crucial investments to build resilience and lead the transition to green mobility despite mounting global pressures.
South Africa is scrambling to protect its economy after USA’s President Donald Trump signed sweeping tariff measures targeting the country's key exports, potentially putting 100 000 jobs at risk, reported Reuters on 1 August.
Vehicle exports to the US – South Africa’s second-largest trading partner and a key destination for locally manufactured premium models – have plummeted by 82.2% in the first half of the year compared to the first half of 2024.
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You can't buy happiness but you can buy cars and that's kind of the same thing.
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President Cyril Ramaphosa has expressed strong confidence in South Africa's automotive industry, stating it is making crucial investments to build resilience and lead the transition to green mobility despite mounting global pressures.
South Africa is scrambling to protect its economy after USA’s President Donald Trump signed sweeping tariff measures targeting the country's key exports, potentially putting 100 000 jobs at risk, reported Reuters on 1 August.
Vehicle exports to the US – South Africa’s second-largest trading partner and a key destination for locally manufactured premium models – have plummeted by 82.2% in the first half of the year compared to the first half of 2024.
