NUMSA And Vehicle Manufacturers Strike Three-Year Wage Deal After Prolonged Deadlocks

Trade union NUMSA and South Africa’s vehicle manufacturers’ associations have finally concluded a wage deal after several rounds of stalled negotiations.

The agreement follows weeks of tense discussions, with both sides repeatedly hitting deadlocks before reaching common ground.

NUMSA confirmed that the majority of its members have accepted the settlement, which includes wage increases spread over three years.

Three-Year Wage Increase Structure Announced

According to the association, employees will receive a 7% wage increase in the first year, followed by a 5.5% increase in each of the next two years.

NUMSA spokesperson Phakamile Hlubi-Majola said members will also benefit from backdated wage payments covering five months.

“This is a three-year wage agreement starting from the 1st of July, 2025 and expiring on 30 June, 2028.

“The agreement is broken down in the following way: 7% increase for the first year, which is applicable from the 1st of July, 2025 and will be backdated and 5.5% or CPI, whichever is greater, for the second year and also for the third year.”

YOU MAY ALSO LIKE: National Treasury Saves R6.7 Billion Through TARS Initiative To Curb Wasteful Spending

Hlubi-Majola noted that the deal also includes an adjustment to the transport allowance, as well as additional provisions tied to short-time arrangements.

“There’s also an increase in transportation and a clause regarding short time, and of course, NUMSA has also negotiated a once-off taxable gratuity payment of R12,500, which will be paid to each employee in the bargaining unit in the next payroll cycle.”

---

For More, Follow SurgeZirc SA On  Facebook, X,  Instagram and Bluesky