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News24 reports that a long-standing deadlock between SA’s automakers and its factory workers has been resolved with the Automobile Manufacturers Employers Organisation (AMEO) and National Union of Metalworkers of SA (Numsa) striking a new wage deal on Friday.
The union had recently threatened strike action over the deadlock. According to AMEO, which represents automakers including BMW, Ford, Toyota, Volkswagen, Isuzu, Nissan, and Mercedes-Benz, the union had finally accepted its improved multi-year offer this week. The deal includes a 7% wage increase in the first year and a 5.5% wage increase for the second and third years. The new deal, which will expire on 30 June 2028, will also provide for a once-off, strike-free, taxable gratuity of R12,500 and improved benefits for transport, housing, and medical aid.
AMEO chairperson Abey Kgotle, speaking at a signing ceremony of the wage agreement on Friday, said the deal was good news for global investors. He said: “We appreciate the constructive engagement demonstrated throughout the process, and we believe this agreement provides certainty for workers, employers, and global investors alike.” Meanwhile, the industry continues to face headwinds, including US tariffs, cheaper imports flooding the market, and retrenchments.
- Read the full original of the report in the above regard by Na'ilah Ebrahim at News24 Business (subscription / trial registration required)
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