The National Union of Metal Workers of South Africa (NUMSA) has settled a dispute with the Automobile Manufacturers Employers’ Organization, the trade group that includes automobile manufacturers Nissan, Ford, Toyota, BMW, Mercedes-Benz, Renault and VW. The Metalworkers agreement calls for a 35% wage increase spread over three years, with 10% in the first year, 8% in the second and 8% in the third. It also provides a 20% shift allowance and increases in transport and housing subsidies.
NUMSA declared a dispute with the employers’ group in July. After prolonged negotiations, an agreement was reached and signed on 12 September. This is the first time in nine years that an agreement was reached in the sector without strike action. In 2013, a strike by the Metalworkers in both manufacturing and components caused major problems for automakers.
South Africa’s growing auto manufacturing sector is an import contributor to the country’s GDP and exports. The sector accounts for about 12% of South Africa’s manufacturing exports, largely to Europe. During 2015 production of the average model reached 45,000 units. Two modes were over 100,000.
“We feel this is a good deal in the circumstances, and we’re very pleased that our members have endorsed it. In other sectors, tough negotiations are proceeding,” said NUMSA action spokesperson Patrick Craven.
NUMSA general secretary Irvin Jim said that while negotiations went smoothly in the auto manufacturing sector, strike action was looming in the components sector, because of employers’ failure to make a meaningful offer. NUMSA is fighting the fragmentation of bargaining councils in the sector, and is still in dispute with the Fuel Retailers Association and the Retail Motor Industry Organization.
“We wish to inform bosses in the sectors where negotiations are going on to come to the party and make meaningful offers. We will move very swiftly from now onwards to mobilize workers to push employers in sectors still negotiating to swiftly complete the current round of negotiations,” said Irvin Jim.
“This is a good negotiated settlement for Metalworkers in the auto manufacturing industry. Employers in related sectors need to come to the table with a meaningful offer, and end the uncertainty in the sector,” said Helmut Lense, IndustriALL director for the Automotive and Rubber sectors.
