South Africa’s automakers have reached a three-year wage agreement with the union representing 21,000 workers, according to Reuters.

“The deal sets an average pay rise of 7.5%, representing a real wage hike for workers in the vehicle manufacturing industry,” The National Union of Metalworkers of South Africa’s (NUMSA) spokesman, Dumisa Ntuli, said in a statement cited by the news agency.

NUMSA had threatened to go on strike after failing to reach an agreement on wage increases with the Automobile Manufacturers Employers Association, the report said.

The union reportedly had demanded a 9% across-the-board increase, while employers offered 6.5%.

“We were able to seal the deal without any conflict for the first time in the history of the industry,” Ntuli 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.

The news agency noted that South Africa’s automakers have won several contracts for the export market and the unions have traditionally used such multi-billion rand contracts to pressure employers to agree to their demands.