The National Union of Metalworkers of SA (Numsa) said on Thursday evening that a last-ditch effort by it and executives from the country’s car manufacturers had failed to break a wage deadlock.
Numsa said: “Unfortunately, the offer from the employers has not been accepted by Numsa … which means the current deadlock remains unresolved. As such a certificate of non-resolution is in the process of being issued by the facilitators in line with the [national bargaining forum] agreement with a possible strike on the cards.”
The union rejected the employers’ proposed increases of 6.5% for the first year and 5% for the next two years. The union, which has described the offer as an “insult” and a “serious provocation” to its members, is demanding increases of 9% in the first year and 8% in the outer years. The inflation rate is 3.4%.
The union, SA’s largest with more than 400,000 members, is also demanding a R20,000 gratuity against the employers’ R10,000 and an 80% employers’ contribution to medical aid.
The country’s seven car manufacturers, or original equipment manufacturers (OEMs), which contributed about 5.2% of the country’s GDP in 2024, are Toyota Motors SA, Nissan, Isuzu, Ford, VW SA, BMW SA and Mercedes-Benz. They are represented by the Automobile Manufacturers Employers Organisation (Ameo).
The automotive sector, which is a big driver of exports, is facing economic headwinds amid cheaper imports from China and tariffs imposed by the US. It employs more than 30,000 workers.
The association has said the industry is at a critical crossroads, with global production growth having been flat over the past decade and internal combustion engine volumes declining as the world transitions towards new-energy vehicles.
“For SA, where over 60% of vehicle production is exported, this transformation presents both an opportunity and an existential challenge. SA OEMs are currently operating below optimal capacity, with declining domestic sales and fierce competition from imported vehicles, particularly from China and India,” Ameo said in a recent statement.
It noted that the industry faced tariff risks, supply chain disruptions and the urgent need to transition towards new-energy vehicle manufacturing to retain export markets and safeguard jobs. Its offer exceeded inflation projections and reflected its commitment to protecting both jobs and the long-term sustainability of the auto manufacturing sector.
The wage offer “balances competitiveness, affordability and job preservation, avoiding a scenario where excessive wage escalation could trigger retrenchments or reduced investment from global parent companies”.
However, Numsa general secretary Irvin Jim said the offer “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”.
Ameo said it remained committed to a fair and sustainable wage settlement that balanced the well-being of workers with the long-term survival of the industry.
“We urge all stakeholders to act in good faith and avoid outcomes that could jeopardise the livelihoods we all seek to protect.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.