Unions in three-year wage deal with vehicle retailers, components makers

2nd December 2016

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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South Africa’s components makers and the retail motor industry have reached a new three-year wage agreement with the National Union of Metalworkers of South Africa (Numsa) and the Motor Industry Staff Association.

The settlement will see wage increases at components manufacturers of 8.5% in Year 1, 8% in Year 2 and 7.5% in Year 3 of the agreement.

The agreement expires on August 31, 2019.

Increases in the rother segments of the retail sector will be set at 7% a year. However, forecourt attendants at service stations will receive a 10% increase in Year 1, 8% in Year 2 and 8% in Year 3.

The wage agreement follows a protracted negotiation process in which Numsa at first wanted a one-year wage agreement rather than a three-year agreement, while it also canvassed for the establishment of a ‘mega’ bargaining council for the motor industry.

The Retail Motor Industry Organisation did not agree with these terms.

South Africa’s vehicle manufacturers in September signed a new three-year wage deal with Numsa. The new deal sees workers receiving a 10% raise in 2016 and an 8% increase in each of the following two years.

The previous rounds of wage negotiations in the manufacturing and motor retail sectors in 2013 resulted in two protracted strikes.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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