South Africa’s nationwide auto industry strike that has decimated production for the past two weeks, is finally over with workers slated to return during the next few days.
The walkout by most auto sectors in South Africa including components, tyres and garages, has seen 70,000 workers down tools, but the National Union of Metalworkers of South Africa (NUMSA) said today (16 September) it had accepted a deal.
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“We have not signed anything [yet] but we have arrived at an in-principle agreement,” NUMSA deputy general president Karl Cloete told just-auto from South Africa. “The signing will happen tomorrow.”
It appears “one or two” issues remain to be resolved, but Kloete confirmed the damaging strike had now been called off.
“Within the next 48 hours people should be prepared to return to work,” said Kloete. “We have not gone to the exercise of [what] it cost the industry as we are more involved with trying to get a solution to this. The agreement is binding for three years.”
The Retail Motor Industry Organisation (RMI) welcomed the news after holding lengthy talks in a Johannesburg hotel with NUMSA for the past 15 days.
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By GlobalData“Everything is resolved,” RMI CEO Jeff Osborne told just-auto from South Africa. “One of the core issues for us was the three-year deal from a stability perspective – this is good for the industry.
“Hopefully – this will serve to restore some of the levels of confidence. People will start filtering back by Monday. The strike cost on all sides and they [union] have come under a lot of pressure from their own members.”
Baring any last minute hitches – and the talks have taken 15 days – the deal is due to be signed tomorrow in the same Johannesburg hotel in which negotiations have been taking place.
