Numsa warns of possible wage strike in auto sector
The National Union of Metalworkers of South Africa (Numsa) has warned that workers in the auto sector could down tools if the deadlock in wage talks is not broken.
Union members have rejected the auto industry’s wage proposal of a 6.5% increase for the first year and 5% for the following two years.
Numsa spokesperson Phakamile Hlubi-Majola argued that the offer is insufficient to sustain workers' basic needs, given rising living costs.
"This offer on the table constitutes a serious provocation; it is an insult given that the auto sector is the leading sector in both the auto industry and the manufacturing sector in terms of backward and forward linkages," said Hlubi-Majola.
Other issues that parties still need to iron out include medical aid, gratuity bonus, and service leave.
The South African automotive sector generated R270.8 billion from vehicle and component exports in 2023, while its overall contribution to the nation's GDP was around 5.2% in 2024.
It also employs more than 100,000 people directly.
Hlubi-Majola said the union told employers this past weekend that their unwillingness to compromise will force the union to consider signing a one-year deal instead.
She warned that this would create unnecessary instability in the industry.
“The union has consistently and sharply conveyed to employers that the fact that the CPI is at 3.4% cannot be used as a justification for employers to impose a three-year wage deal, which amounts to a wage freeze.
“Employers cannot expect workers to bear the brunt of current socio-economic conditions. It is a firm Numsa stance that employers in the auto industry must be prepared to provide support for workers whose lives are negatively impacted by inflationary socio-economic conditions.”
According to Hlubi-Majola, the breakdown of negotiations could lead to workers downing tools.
“The union might have no choice but to go on strike as a last resort, considering the gravity of such action and its negative effects on the industry, both in the short and long term.
“The union leadership was very clear yesterday that a meeting of CEOs and Numsa’s national leadership must be arranged urgently, no later than Tuesday next week. Such a meeting should do everything possible, with parties willing to move from their positions, to break the current deadlock in the industry and prevent a possible strike.”
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