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- Numsa has negotiated an 8.5% increase for workers employed in car manufacturing and related industries.
- Not only is the increase above inflation, but it will bring their cumulative wage increases to 22.5% after three years.
- These workers will also get a once-off R10 000 gratuity payment and higher housing subsidies.
- For more stories, go to the News24 Business front page.
The National Union of Metalworkers of South Africa (Numsa) has secured an 8.5% wage increase for workers in the auto industry. The union, chuffed about getting an above-inflation increase for its members, pointed out that in the last bargaining period in 2019, the total quantum of wage increases it secured in this sector amounted to 23% for three years.
"It is progressive in that we secured an 8.5% increase in the first year, which is an above inflation increase…Now in 2022, the union managed to secure 22.5% in the post-covid-19 era, and against the poor economic outlook," wrote Numsa general secretary Irvin Jim in a statement.
This wage agreement is valid from 1 July 2022 to 30 June 2025. Workers will receive an 8.5% increase in the first year, backdated to 1 July 2022. In the second year, they will get a 7% or CPI-related increase, whichever is greater. The same will happen in year 3.
Over and above those annual increases, they will get a once-off gratuity payment of R10 000.00 in year one. Furthermore, the union has negotiated more favourable terms for short-time workers and movements to higher salary bands.
"It is significant that we have maintained the standard for the sake of workers and their families when other unions are encouraging members to sign agreements and settle with 3%," said Jim.
Other perks include an increase in housing subsidies. In 2016 Numsa members in the auto sector got a housing subsidy of R500 per month and a once-off R5 000 for first-time home buyers. Now, that monthly subsidy will increase from R500 to R1 000 for qualifying employees, and the once-off subsidy for first-time homeowners will grow to R7 500. This subsidy will be backdated too to July.
