Numsa says it has three-year wage deal with auto group

South Africa’s largest trade union, the National Union of Metalworkers of South Africa, says it has signed an agreement with an automobile group on wage increases for workers that will total 22.5% over three years.

The workers will receive an 8.5% increase in the first year, backdated to July 1, 2022, and will get a further 7% — or inflation-linked rise, if that is larger — in the second and third years, Irvin Jim, general secretary of the union, said in a tweet on Friday.

“The union managed to secure 22.5% in the post-Covid-19 era, and against the poor economic outlook,” Jim said in a Numsa statement posted on his Twitter page.

The agreement between the union and the Automobile Manufacturers Association is binding for all parties and is valid until June 2025, according to the statement.

© 2022 Bloomberg L.P.

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