South African autoworkers negotiate wage and benefit gains

SOUTH AFRICA: On August 17, the National Metalworkers of South Africa reached agreement with seven car manufacturers, avoiding an industry-wide strike and winning substantial gains for workers.

The agreement covers approximately 15,000 autoworkers and includes:

• Wage increases for year 1 will be 9% ATB
• Wage increases for year 2 will be 8% ATB
• Wage increases for year 3 will be 7.5% ATB
• Improved benefits on Severance Pay, the establishment of an industry-wide Provident Fund, improved benefits on Maternity Leave, career pathing for the C02 welders and spray painters.
• The agreement also proposes that other matters such as the limitation on the work of Labour Brokers, the establishment of a Plant Task Team to consider the adverse effects and payment thereof in the event of a Short time or Lay-off, that the parties will negotiate these matters at plant-level.
• Provisions for the establishment of an Industry Policy Forum which will consider, the issue of black economic empowerment and benefits to members, this Policy Forum will also consider the issues of, HIV and  AIDS, a Social Plan to deal with issues of retrenchments and closures and the establishment of a Mega Bargaining Council.

NUMSA General Secretary, Silumko Nondwangu, said that both parties had skilful negotiators at the table and that he hopes to continue winning gains for NUMSA members in other industries.

“This is the second landmark agreement we have signed this year in our sectors which substantially improves conditions of employment and takes a long-term view to the continued growth of our sectors,” Nondwangu said, adding “NUMSA is not prepared this year to settle on anything that does not substantially improve conditions of employment. When we said at the beginning of the year that we will fight for a share of the windfall in profits, we meant business.”