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BusinessLive reports that employers in the vehicle manufacturing sector have hailed the multiyear wage agreement reached with the National Union of Metalworkers of SA (Numsa).
The parties signed a wage agreement on Thursday after months of intense negotiations. The Automobile Manufacturers Employers Organisation (Ameo) described the successful conclusion of the wage negotiations as creating “much-needed stability and policy certainty in the motor industry”. As part of the deal, workers will receive a salary increase of 9% in the first year. In the second and third years, they will receive an increase in line with the consumer price index (CPI) or 7%, whichever is greater. The agreement will be backdated to 1 July. The parties agreed that in the first year, the transport allowance will be increased from R1,540 to R2,500 and by 7% (or in line with CPI) in the second and third years. Numsa also managed to squeeze out a one-off gratuity payment of R7,500 for its members. The 9% wage agreement was significantly lower than the 20% increase Numsa had initially demanded when it tabled its wide-ranging demands to employers in June, which included morning, afternoon and night allowances of 10%, 20% and 30%, respectively.
- Read the full original of the above report by Luyolo Mkentane at BusinessLive
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