All 70,000 workers currently on strike in South Africa’s automotive industry could return to work within 48 hours if union leaders accept an offer made by employers today (15 September).
The National Union of Metalworkers of South Africa (NUMSA) has been ensconced in exhaustive talks with the Retail Motor Industry Organisation (RMI) in a bid to halt the 15-day strike, which has all but crippled the country’s major OEM production.
Go deeper with GlobalData
“We would probably see a return of workers in the next 48 hours because we have recommended [the deal],” NUMSA deputy general president Karl Cloete told just-auto from South Africa.
“We are just waiting for feedback from the nine different provinces – we should have a decision by tomorrow midday.”
Should NUMSA accept the deal, it would then go forward to South Africa’s Motor Industry Bargaining Council for formal ratification.
Cloete declined to detail the cost of the damaging dispute, but highlighted the fact the auto industry contributed 7% to South Africa’s GDP.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe employers’ body confirmed an agreement had been reached and that NUMSA had given assurances it would “not renege” on the deal.
Specifically the three-year agreement – that stretches across a major number of auto sectors in South Africa – will see fuel station employees receive 10%, 9% and 9% wage rises, component workers, 9%, 8% and 8%, while the remainder of the industry will have 9%, 8% and 7% increases.
“That, in our view is a good deal, given the present inflation rate which is around 3.8%,” RMI CEO Jeff Osborne told just-auto.
“The main area of concern has been the component manufacturers and their inability to supply the vehicle manufacturers – that is the big one. The sooner they go back the better.”
