South Africa’s automakers and a union representing 21,000 workers are close to reaching an agreement on wage increases that could prevent a strike, industry and union officials reportedly said on Monday.

The National Union of Metalworkers of South Africa (NUMSA) had said its members would go on strike on Monday after failing to agree on wage increases with employers, Reuters reported.

“We won’t pursue strike action today. Talks on Friday were impressive and we will make a final decision on Friday after consulting our members,” union spokesman Dumisa Ntuli told the news agency.

The union reportedly is demanding a 9% across-the-board increase while employers are offering 6.5%, Reuters noted.

“We are very close to an agreement and we should know by the end of the week if the members have accepted our proposals,” said Automobile Manufacturers Employers’ Organisation (Ameo) Dave Kirby told Reuters.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

NUMSA’s Ntuli reportedly said he could not divulge the details until a deal had been reached.

According to Reuters, Ameo members include BMW South Africa, DaimlerChrysler South Africa, Ford Motor Co. of Southern Africa, General Motors South Africa, Nissan South Africa and Volkswagen South Africa.

The news agency noted that most have been awarded multi-billion-rand export deals by their parent companies, and the unions have traditionally used such obligations to force them to agree to their demands.

South Africa’s auto manufacturers have won several contracts for the export market and make up 12.% of the country’s total exports, Reuters added.