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BusinessDay reports that the National Union of Metalworkers of SA (Numsa) has held general meetings with members in the automotive industry to secure a mandate, following an ongoing deadlock in wage negotiations with the Automobile Manufacturers Employers Organisation (Ameo).
It is now set to meet executives from the Ameo, which represents seven original equipment manufacturers, on Thursday and Friday. Last week, Ameo tabled what it called a full and final settlement proposal for increases of 7% in the first year of a multi-year deal (it previously offered 6.5%) and 5.5% for the next two years (previously 5%). This spurred Numsa, which had been demanding increases of 9% in the first year and 8% in the outer years, to call on the employers to consider an 8% offer in the first year and 6% in the second and third years. “Or if employers believe that that is still tough for them, the union is willing to settle on 7% for the respective three years,” Numsa’s Irvin Jim indicated on Friday.
If the union elects to down tools and embark on strike action, it could hurt an industry facing economic headwinds amid cheaper imports from China and tariffs imposed by the US. The sector contributes nearly 5% to SA’s GDP and supports more than 30,000 direct jobs and more than 100,000 indirect jobs. Ameo has said its final offer was sensible and economically responsible, as it exceeded inflation and matched industry benchmarks.
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessDay (subscriber access only)
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