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Numsa signs 8.5% salary increase agreement with car manufacturers

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THE National Union of Metalworkers of South Africa says it has signed an agreement with an automobile group on wage increases for workers that will total 22.5% over three years.

The workers will receive an 8.5% increase in the first year, backdated to July 1, 2022, and will get a further 7% — or inflation-linked rise, if that is larger — in the second and third years, Irvin Jim, general secretary of the union, said in a tweet on Friday.

The deal will also include a once-off gratuity of R10 000.

The union said workers can expect back pay from July to September at the end of the month.

“The union managed to secure 22.5% in the post-Covid-19 era, and against the poor economic outlook,” Jim said in a Numsa statement posted on his Twitter page.

The agreement between the union and the Automobile Manufacturers Association, which represents Toyota Motors SA, Nissan, Isuzu, Ford, VW SA, BMW SA and Mercedes-Benz, is binding for all parties and is valid until June 2025, according to the statement.

In June NUMSA was requesting a double-digit wage increase. 

The trade union had requested salary increases of up to 20% for workers in the automotive industry.

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