Numsa signs deal with carmakers

Numsa and SA’s seven vehicle manufacturers have broken their deadlock and signed a three-year wage agreement.

The union and the Automotive Manufacturers Employers Organisation (Ameo), which represents the manufacturers, signed the agreement on Friday.

It includes a 9% increase for the first year and 7% for the second and third years, or what the Consumer Price Index (CPI) is at the time, whichever is higher. This is slightly less than the double digit increase that Numsa had demanded.

The motor industry employs 87,777 people directly and an additional 380,725 indirectly, making it a critical industrial employer.

Ameo spokesperson Andile Dlamini said the wage increase would be backdated to July 1.

“This was the third time the negotiations were concluded without industrial action.

“The agreement binds the manufacturers and workers for the next three years,” he said.

The industry has been dogged by poor vehicle sales, among other issues

“The successful conclusion of wage and conditions-of-employment negotiations for the next three years creates a platform for much-needed stability and policy certainty in the motor industry.

“The agreement will help the South African-based original equipment manufacturers conduct long-term planning, model allocation and volume planning.”

Ameo represents BMW, Ford, Isuzu, Mercedes-Benz, Nissan, Toyota and Volkswagen SA.

Together, these manufacturers produced 610,854 vehicles in 2018 and exported 351,139.

However, the industry has been dogged by poor vehicle sales, among other issues, and is considering other African countries for export opportunities.

According to figures released by the National Association of Automobile Manufacturers of SA (Naamsa), the demand for cars and commercial vehicles in August fell 5.1% from a year earlier.

The union and Ameo also agreed that the transport allowance be increased from R1,540 to R2,500 in the first year, which is half of the R5,000 Numsa had initially demanded.

The allowance will increase 7%, or by the CPI, for years two and three.

Numsa also managed to squeeze out a once-off gratuity payment of R7,500 for its more than 450,000 members working at car manufacturers.

Numsa general secretary Irvin Jim said the agreement came after weeks of intense negotiations.

He said the union also managed to increase the amount of money to be paid to workers during temporary layoffs.

“A focus group will be established for the purpose of developing and finalising the recommendations and proposals for the implementation of an industry medical aid,” he said.

“We remain hopeful that the issue of the industry medical aid will be resolved soon.”