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BusinessDay reports that the National Union of Metalworkers of SA (Numsa) said on Thursday evening that a last-ditch effort by it and executives from SA’s vehicle manufacturers had failed to break their wage deadlock.
The union indicated: “Unfortunately, the offer from the employers has not been accepted by Numsa … which means the current deadlock remains unresolved. As such a certificate of non-resolution is in the process of being issued by the facilitators in line with the [national bargaining forum] agreement with a possible strike on the cards.” The union rejected the employers’ proposed multi-term increases of 6.5% for the first year and 5% for each of the next two years. Numsa, which has described the offer as an “insult” and a “serious provocation” to its members, is demanding increases of 9% in the first year and 8% in the outer years. The inflation rate is 3.4%. The union is also demanding a R20,000 gratuity against the employers’ R10,000 and a 80% contribution by employers to medical aid.
The country’s seven car manufacturers are represented by the Automobile Manufacturers Employers Organisation (Ameo). According to the association, the industry is at a critical crossroads, with global production growth having been flat over the past decade and internal combustion engine volumes declining as the world transitioned towards new-energy vehicles. Ameo said its offer exceeded inflation projections and reflected its commitment to protecting both jobs and the long-term sustainability of the auto manufacturing sector.
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessDay
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