Vehicle manufacturers and trade unions in South Africa have reached a pay deal that has averted a strike.
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According to Reuters. the National Union of Metalworkers of South Africa (Numsa) has withdrawn a notice to go on strike. The agreement will be put to members.
Manufacturers have agreed to demands for a 9% pay increase this year, followed by 8.5% next year. There will also be improved severance, pension and maternity benefits, according to the report.
About 15,000 workers had threatened to go on strike at eight vehicle manufacturers unless there was a ‘fresh commitment’ to resolving the dispute.
It was not clear which manufacturers would have been affected, but DaimlerChrysler, Volkswagen, BMW, General Motors, Nissan, Ford, Toyota and Tata all make cars in South Africa with a total of 39,000 employees.
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By GlobalDataThere has been a series of wage-related strikes in South Africa over the past two months including a four-week stoppage by civil servants.
