The Automotive Manufacturers Employers’ Association (AMEO) has successfully concluded the 2019 National Bargaining Forum negotiations with the National Union of Metalworkers of South Africa (NUMSA) with the signing of a three-year agreement.
The NBF heads of agreement between AMEO and NUMSA was signed on 12 September 2019, but the wage increase will be effected retrospectively from 1 July 2019. This was third time the negotiations were concluded without industrial action.
The agreement binds the manufacturers and workers for the next three years. Hourly associates will receive a 9% increase in the first year and for the second and third years of the agreement they will receive an increase in line with CPI or 7%, whichever is greater.
In the context of the recent extension of the Automotive and Production and Development Programme (APDP) until 2035, the successful conclusion of wage and conditions-of-employment negotiations for the next three years creates a platform for much-needed stability and policy certainty in the motor industry. The agreement will help the South African based OEMs conduct long-term planning, model allocation and volume planning.
AMEO represents South Africa’s seven automotive manufacturers, namely BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen. Together, these manufacturers produced 610 854 vehicles in 2018 and exported 351 139 (58%) of that production to 155 countries across the globe.
Numsa national spokesperson Phakamile Hlubi-Majola says the agreement also includes an increase in transport allowance and a once-off gratuity payment amounting to R7500.
