Unions Numsa and Misa negotiated for above inflation increases that business representatives say will ensure stability.
The National Union of Metalworkers of South Africa (Numsa) and the Motor Industry Staff Association (Misa) has secured a three-year wage package for workers in the automotive sector.
More than 300 000 workers associated with the Motor Industries Bargaining Council (Mibco) are set to receive above-inflation increases as well as several other new perks.
Workers in automotive manufacturing, service centres, and retails outlets all stand to benefit from the wage agreement signed on Saturday.
All parties ‘satisfied’
Employers at the bargaining council were represented by the Retail Motor Industry Organisation (RMI) and Fuel Retails Association (Fuel Retailers Association).
RMI considered the five-month long negotiations a success, as they were concluded “without a single dispute” expressed by the trade unions.
“RMI is satisfied with the outcome of the Mibco 2025 collective bargaining process, as it reflects the mandate of our members while balancing the realities and sustainability of businesses across the motor industry,” stated RMI Labour Director Jeffrey Molefe.
Numsa said the outcome was a significant step in improving the conditions of employment.
“Numsa continues to be a sword and a spear for workers ensuring that their lives improve with each wage deal that we sign,” stated Secretary-General Irvin Jim.
Mibco will adopt the wage agreement at special council meeting in September, after which it requires gazetting and the declaring of an implementation date by the Department of Employment and Labour.
“Upon publication in the government gazette, the wage increases shall become legally binding and compulsory for all employers and employees falling within the registered scope of Mibco,” stated Molefe.
Employee wage increases
Workers in the manufacturing sector will receive a 6% increase for the first year of the agreement, followed by 5% increases in years two and three.
Manufacturing workers will also be entitled to overtime pay equal to one and a half times their usual hourly rate.
Employees of service stations, such as cashiers and petrol attendants, will also receive a 6% increase in year one, but only a 4% increase in the subsequent two years.
Petrol attendants are the exception, as they will receive a 5% increase in year two.
Workers in other sectors such as car dealerships, vehicle distributions, reconditioning workshops and repair and service centres will receive a 5% increase in each of the three years agreed upon.
Further benefits
All employees who are members of the Sick Accident and Maternity Fund will receive 10 days sick leave at full pay, and a further five days at 50% pay.
Families of employees who suffer an “unfortunate situation of death” will be able to claim up to R50 000, while 75% of the employees’ wages will be payable in the event of disability.
Employee primary healthcare will also receive a monthly allocation which will reflect on payslips as an allowance.
Employers will set aside R85 per employee for year one, increasing by R5 for each of the next two years.
“Not only did we secure above inflation increases but, we also secured primary healthcare benefit for the first time for garage workers,” Jim beamed.
“Numsa wishes to thank all shopstewards and officials of the union who spent many hours negotiating this deal.”
RMI’s industry outlook
Molefe explained that RMI’s priority was to ensure that businesses remained competitive while appreciating the “challenging economic environment” for employers and employees.
“The wage agreement reflects a balance between fair remuneration for employees and sustainability of businesses in the motor industry,” Molefe told The Citizen.
He said the negotiations would help consolidate the position of the retail and aftermarket sectors which contribute roughly 2% of the nation’s GDP.
“Importantly, the settlement provides certainty and stability in the industry for the next three years.
“RMI is of the view that the negotiated outcome has been structured to mitigate knock-on effects for consumers,” Molefe concluded.
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