NUMSA says strike on the cards if auto sector deadlock remains unresolved

The National Union of Metalworkers of South Africa (NUMSA) said wage talks in the auto sector have reached a deadlock, with strike action on the cards if the matter remains unresolved.

The union and the industry failed to reach an agreement this past weekend.

At the centre of the deadlock is the percentage increase that employers must offer to settle this round of negotiations for a period of three years.

Their proposal of 6.5% for the first year and 5% for the following two years has been rejected by NUMSA.

Other matters that still need to be ironed out include medical aid, gratuity bonuses and service leave.

South Africa’s automotive industry is key to the economy, employing more than 100,000 people directly.

NUMSA spokesperson Phakamile Hlubi-Majola said if the auto industry negotiated in bad faith, it could lead to instability.

"The union might have no choice but to go on strike as a last resort, considering the gravity of such action and its negative effects on the industry, both in the short and long term.

"The union leadership was very clear yesterday that a meeting of CEOs and NUMSA' national leadership must be arranged urgently, no later than Tuesday. Such a meeting should do everything possible, with parties willing to move from their positions, to break the current deadlock in the industry and prevent a possible strike."