Numsa has reached a new three-year wage deal with the Automobile Manufacturers Employers Organisation. Photo: Supplied

CAPE TOWN – Numsa, with some 300 000 members in the automotive and related industries, has reached a new three-year wage deal with the Automobile Manufacturers Employers Organisation (Ameo), a statement said.

Ameo, the vehicle manufacturing industry body, represents the automobile manufacturers based in South Africa: including BMW, Mercedes Benz, Ford, Isuzu, Nissan, Toyota and Volkswagen. The last three year agreement came to an end towards the end of June 2019, and formal negotiations started in July.

Numsa started the talks initially demanding a 20 percent wage increase for one year; with other demands including morning, afternoon and night allowances of 10 percent, 20 percent and 30 percent respectively, six months maternity leave and transport allowances of R5 000 a month.

Bosses started negotiations with a 4.5 percent wage increase offer.

In the final agreement, workers will get a 9 percent increase in year one, and then 7 percent in years two and three, or increases equal to inflation, whichever is greater.

The transport allowance has been increased from R1 540 to R2 500, and by 7 percent in years two and three, or in line with inflation, whichever is greater.

An increase in the amount to be paid to workers during times of temporary layoff was also agreed. 

The parties also agreed to establish two focus groups to develop an industry medical aid, and a skills based grading framework.

BUSINESS REPORT