The Automobile Manufacturers Employers Organisation (AMEO) and the National Union of Metalworkers of South Africa (Numsa) have signed a new three-year sector wage deal.
The agreement will see workers at the country’s vehicle assembly plants receive an 8.5% wage increase in the first year, backdated to July 1.
Years two and three will see a 7% increase, or the inflation rate, whichever is higher.
Workers in the bargaining forum are also set to receive R10 000 as a “once off taxable gratuity”, says Numsa.
Housing subsidies are also set to increase from R500 a month for qualifying employees to R1 000 a month, with a once-off payment of R7 500 for first-time home buyers, up from R5 000.
The wage agreement is valid from July 1, 2022, to June 30, 2025.