Johannesburg - The National Union of Metalworkers of SA and the Retail Motor Industry signed a settlement agreement on Tuesday, bringing an end to a four-week strike.
More than a week after Numsa called off the strike, the settlement agreement was finally signed by all parties, said Retail Motor Industry spokeswoman Tania de Kock.
“The end to the strike and the signing of the collective agreement means that the RMI was successful in its bid to reach a multi-year wage agreement after protracted negotiations which started in May this year,” said De Kock.
The RMI was disappointed at how long it took to resolve the strike and in particular the impact it had on the industry and the economy.
“The violence, tragic loss of life and injury to some staff members as well as loss in production and decline in confidence from foreign investors all came as a direct result of the prolonged strike.”
According to the settlement reached on October 6, workers in the automotive components sector will receive a 10 percent increase this year, and eight percent increases in both 2014 and 2015.
“Employees in other sectors will receive a nine percent increase this year followed by eight percent increases in years two and three,” De Kock said.
The RMI felt it was a victory that the settlement retained a “peace clause”, which would prevent further industrial action based on company-level demands.
Numsa wanted a double-digit wage increase and changes to conditions of employment, such as the banning of labour brokers, establishment of a short time workers' fund, and a transport allowance.
Workers in the motor and components sector returned to work on October 7 ending their four-week strike.
The strike started on September 9.