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Wage talks underway in the automotive manufacturing sector


Wage talks are underway in the country's automotive manufacturing sector, ahead of the expiry of the current three-year wage deal at the end of June.

Ford South Africa boss, Jeff Nemeth, said talks between metal workers union Numsa and the manufacturers employers association Ameo, began last year.

He said they've mapped out a process to be followed when talks resume on Friday.

Wage negotiations usually start with the car manufacturers where Numsa is the main player and then proceed separately in the component and tyre sectors.

Nemeth said while manufacturers deal only with one union Numsa, it's more fragmented in the automotive component and other sectors, where a new union Limusa has emerged in opposition to Numsa.

"As we move into the supplier base they usually paint a pattern in their negotiations after what we do in the OEMs so I suspect that with the different representation it wont be as smooth as it has been prior years. I am not predicting that we will have big labour actions necessarily but I do think it will be more difficult to manage" he said.