By Rafieka Williams
The National Union of Metalworkers of South Africa (NUMSA), the Retail Motor Industry Organisation (RMI) and the Fuel Retailers Association have reached a three-year wage agreement that will see fuel and motor industry workers receive wage increases of between 4% and 6%, along with improved benefits.
The deal, facilitated through the Motor Industry Bargaining Council (Mibco), was signed on 23 August 2025 and is being hailed as one of the most constructive and dispute-free negotiations in South Africa’s democratic era.
It covers staff at petrol stations, component manufacturers, car dealerships, vehicle body builders, tyre shops, engine parts suppliers, and after-market sales and service outlets.
Negotiations began on 10 April 2025, ahead of the expiry of the previous collective agreement on 31 August.
The Congress of South African Trade Unions (COSATU) welcomed the outcome, praising Numsa for securing an above-inflation settlement in the automotive sector.
The agreement is expected to benefit more than 300,000 workers under Mibco.
Petrol attendants, who often work long shifts in harsh conditions, stand to gain significantly.
For the first time, they will have access to healthcare, maternity, accident and death benefits.
NUMSA general secretary Irvin Jim said the breakthrough was historic:
“Not only did we secure above-inflation increases, but we also secured primary healthcare benefits for garage workers for the first time. This lays the foundation for the lowest-paid workers to receive quality private healthcare,” he said.
The RMI noted that the negotiations were concluded without a single dispute.
“The signed settlement agreement will be formally adopted at a special bargaining council meeting in September 2025… 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. The effective implementation date will be determined by the minister at the time of publication,” RMI said.
Jim urged government departments to fast-track the process to ensure workers begin receiving the benefits without delay.
INSIDE POLITICS