Moneyweb reports that the second round of wage negotiations between SA’s vehicle manufacturers and the National Union of Metalworkers of SA (Numsa) is scheduled to take place this week, with the parties still poles apart in their offers and demands.  

Phakamile Hlubi-Majola, Numsa’s national spokesperson, confirmed that the union would be meeting the Automobile Manufacturers Employers Organisation (Ameo) in Port Elizabeth from Monday until Wednesday in an attempt to thrash out a new three-year wage and conditions of service agreement for the industry.  She indicated that Numsa had compromised from its initial demand in the current negotiations for a one-year agreement to a three-year agreement, while Ameo had agreed that any agreement struck would be effective retrospectively from 1 July.  Hlubi-Majola reported that Numsa was demanding a 20% wage increase in each year of the three-year agreement, while Ameo had offered an increase in line with consumer inflation (CPI) plus 1% in the first year of the three-year deal, and increases of CPI in years two and three.  Hlubi-Majola pointed out that one of the most important demands being made by Numsa was for an industry medical aid.  Another important demand was that all workers at level 4 must be moved to level 5 because there was a problem with workers spending many years on one level.

• Read the full original of Roy Cokayne’s report on the negotiations at Moneyweb

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