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Motor man­u­fac­tur­ers and union seal wage agree­ment

The Herald - 17 November
 

Article Content

After nine rounds of nego­ti­ations under the National Bar­gain­ing Forum (NBF) and a declared dead­lock by the National Union of Metal­work­ers of SA (Numsa), a wage agree­ment was finally con­cluded and form­ally signed in Gqe­berha. The announce­ment was made by the Auto­mobile Man­u­fac­tur­ers Employ­ers Organ­isa­tion (Ameo) on Fri­day with the agree­ment mark­ing the cul­min­a­tion of extens­ive engage­ments between Ameo and Numsa. These included extens­ive facil­it­ated ses­sions aimed at ensur­ing a sus­tain­able and respons­ible set­tle­ment for the auto­mot­ive industry.

The agree­ment reflects the full and final offer tabled by Ameo at the NBF Plen­ary on Octo­ber 30, com­pris­ing:
● A 7% across-the-board wage increase in year 1, back­dated to July 1 2025;
● 5.5% increases in years 2 and 3;
● A R12,500 one-off gra­tu­ity for all eli­gible employ­ees; and
● Improved employee bene­fits, includ­ing increased trans­port and hous­ing allow­ances as well as enhanced short-time com­pens­a­tion.

The enhance­ments are to ensure that auto­mot­ive man­u­fac­tur­ing employ­ees con­tinue to enjoy some of the most com­pet­it­ive wages and bene­fits in the indus­trial land­scape.
The industry con­trib­utes nearly 5% to GDP and sup­ports more than 130,000 dir­ect and indir­ect jobs.
Ameo chair Abey Kgotle said the agree­ment bal­anced fair­ness for employ­ees with the long-term sus­tain­ab­il­ity of SA’s auto­mot­ive man­u­fac­tur­ing sec­tor.
“This agree­ment is a test­a­ment to the matur­ity of our social part­ner­ship under the National Bar­gain­ing Forum.

“Des­pite a chal­len­ging envir­on­ment and a dead­lock, all parties ulti­mately pri­or­it­ised sta­bil­ity, com­pet­it­ive­ness and the long-term sus­tain­ab­il­ity of the auto­mot­ive man­u­fac­tur­ing sec­tor.”
Ameo exten­ded its appre­ci­ation to Numsa, the NBF facil­it­a­tion team and all stake­hold­ers who par­ti­cip­ated con­struct­ively throughout the pro­cess.

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The article from The Herald highlights a major breakthrough in South Africa's automotive manufacturing sector. The Automobile Manufacturers Employers Organisation (AMEO) and the National Union of Metalworkers of South Africa (NUMSA) have reached a three-year wage agreement after extensive negotiations. This agreement comes during a challenging economic climate for the industry, which contributes approximately 5% to the country's GDP and supports over 130,000 direct and indirect jobs.

Prayer Requests
Praise Point
Heavenly Father, we praise and thank You for the stability this wage agreement brings to South Africa's automotive sector, averting disruptions and fostering peace among employers and workers in an industry that supports countless livelihoods. As it is written in Psalm 85:10 (NIV): "Love and faithfulness meet together; righteousness and peace kiss each other." We glorify You for this harmonious resolution that reflects Your divine order. Amen

Prayer Point
Lord Jesus, we pray for the continuity and strengthening of all working relationships and deals, not only in the automotive industry but across every sector, that they may endure challenges and promote mutual respect, fairness, and prosperity for all involved. Guide leaders and workers alike to seek Your wisdom in their engagements. As Colossians 1:17 (NIV) declares: "He is before all things, and in him all things hold together." May Your sustaining power uphold these partnerships for the greater good. Amen.

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