South Africa’s automotive employers body says the union leading the country’s hugely damaging walk-out has provisionally accepted a package designed to see up to 31,000 striking workers end industrial action.
The South African Automotive Employers Organisation (AMEO) claims the National Union of Metalworkers of South Africa (NUMSA), is now waiting to receive feedback from its members concerning the undisclosed offer.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
NUMSA had previously demanded a 14% pay rise plus housing as well as transport benefits and while the employers had offered 8%, unconfirmed reports in South Africa indicated this might have risen to 10%.
“The union leadership has accepted the package – it is a breakthrough,” AMEO chairman, Thapelo Molapo, told just-auto from South Africa. “At the moment, NUMSA is in a national meeting to try and consolidate feedback from the plants.
“I can confirm we will be meeting with the union tonight in Johannesburg.”
The huge strike is costing US$58m a day according to AMEO and with the walkout now in its ninth day, employers are concerned about the image such large-scale industrial action has on South Africa’s manufacturing reputation.
“The process now is there is an agreement on a package – that package has to be presented to the workers until they are comfortable with it,” said Molapo. “Some workers might need some clarity.”
Should the deal be ratified by NUMSA members, it would be “extremely unlikely” work could resume tomorrow (30 August), said Molapo, although there is a possibility of a restart on 2 September.
South Africa is currently enduring a wave of industrial action that could also see 72,000 automotive retail, panel beaters and component makers among others, walk out on 2 September.
NUMSA was not immediately available for comment.
