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Numsa, Mibco struggle to reach wage agreement

13th August 2019

By: Marleny Arnoldi

Deputy Editor Online

     

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Wage negotiations between the National Union of Metalworkers of South Africa (Numsa) and the Motor Industry Bargaining Council (Mibco) have deadlocked.

Mibco represents workers in the motor sector, including in component companies, petrol stations and car dealerships.

The South African motor sector employs about 306 000 workers.

The current wage agreement in the sector will expire on August 31 and new wages and benefits need to be negotiated.

Numsa is demanding a one-year agreement and a 12% across the board wage increase. The union also wants employers to contribute 60% to employees’ medical aid costs, with the employees to pay the remaining 40% contribution.

In response to the union’s demands, employers have offered only a 4.5% increase across the board, says Numsa.

Mibco and Numsa are meeting again this week in a last attempt to reach a wage agreement.

If this meeting fails, Numsa says it will register a dispute and initiate strike action, which will negatively impact on motor sector supply numbers.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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