The National Union of Metalworkers of SA (Numsa) said its members will have to decide whether to embark on a strike at the country’s seven car manufacturing companies after rejecting the employers’ revised offer.
The Automobile Manufacturers Employers Organisation (Ameo), representing the seven original equipment manufacturers (OEMs) — Toyota Motors SA, Nissan, Isuzu, Ford, VW SA, BMW SA and Mercedes-Benz — tabled what it called a full and final settlement proposal on Thursday for increases of 7% in the first year (it previously offered 6.5%) and 5.5% for the next two years (previously 5%).
This spurred Numsa, which had been demanding increases of 9% and 8% in the outer years, to call on the employers to consider an 8% offer in the first year and 6% in the second and third years. “Or if employers believe that that is still tough for them, the union is willing to settle on 7% for the respective three years,” Numsa general secretary Irvin Jim said during a media briefing in Johannesburg on Friday morning.
The inflation rate is 3.4%.
“Given that negotiations are a give and take, Numsa moved and suggested to employers to consider an offer of 7% in the first year and 6.5% for the following two years. When the facilitators pushed Numsa to consider … a settlement of 7%, 6% and 6%, as a union we were amendable to take such a position back to our members and recommend a settlement,” Jim said.
“However, the employer delegation in the negotiations continued to be hardline and remained very rigid and arrogant in their position of maintaining an offer of 7% and 5.5% for the respective two years. As a result, parties reached a deadlock, and the union was left with no option but to call on the facilitators of the NBF [national bargaining forum] to process a certificate of non-resolution, which the union will take back to its members of the seven OEMs for workers to decide on the next course of action, given that parties have failed to resolve the current impasse.”
Jim said as a worker-controlled union, “it will be workers who decide whether we must give employers a 48-hour notice for a strike action and when such a notice should be served”.
“Numsa remains a responsible and a constructive union, and that is why we are using this press conference to make a clarion call to the CEOs of the seven OEMs to do what is correct and fair and increase the current offer in the coming two years by 0.5%.”
Jim said if employers were not prepared to move from their position, the industry must consider signing a one-year agreement and negotiate again with the union in 2026: “Numsa remains available to meet with employers and the CEOs to once more explore whether parties can’t be prepared to move from their positions.”
Ameo said its proposal represented a “responsible and enhanced offer aimed at securing industrial stability and protecting the long-term competitiveness of SA’s automotive manufacturing industry”.
The automotive manufacturing industry — which is facing economic headwinds amid cheaper imports from China and tariffs imposed by the US — contributes nearly 5% to SA’s GDP, supports more than 30,000 direct jobs and more than 100,000 indirect jobs, and generates over R150bn in annual export revenue.
“This final offer is both sensible and economically responsible, exceeding inflation, matching industry benchmarks and ensuring that workers’ incomes grow while preserving the sustainability of SA’s globally competitive automotive industry,” Ameo said.
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