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Three-year auto sector wage deal signed

28th October 2022

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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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 “one-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 one-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.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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