Motoring

AMEO reach an agreement with NUMSA

A three-year agreement was reached during the National Bargaining Forum in between the Automotive Manufacturers Employers’ Association and the National Union of Metalworkers of South Africa.

This being the third time that negotiations concluded without industrial action, AMEO and NUMSA agreed on a three-year agreement where workers will receive a 9% increase in their hourly rates in the first year and an increase in line with CPI or 7%, whichever is greater for years two and three. The increase will be implemented on 1 July 2019. The agreement is to provide stability and policy certainty in the automotive industry which has contributed to 6.9% of the country’s gross domestic product, for the next three years, this will greatly benefit the extended Automotive and Production and Development Programme which is set to continue until 2035.

AMEO represents BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen and the agreement they have secured will assist these OEMs in conducting long-term planning, model allocation and volume planning. While R52 billion has been invested since 2010 in the automotive sector, the seven AMEO members have forecasted an additional R39.4 billion investment over the next five years to further increase production from the 610 854 vehicles produced locally in 2018.

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