Automotive industry braces for possible strike action

South Africa’s motor manufacturing sector faces possible strike action after wage negotiations between employers and the National Union of Metalworkers of South Africa (NUMSA) deadlocked last week.

NUMSA spokesperson Phakamile Hlubi-Majola explained that the dispute centred on annual wage increases, with the employers proposing 6.5% for the first year and 5% for the following two years.

The inflation rate in September 2025 was 3.4%.

"We would be willing to compromise if they could offer us 7% for the first year and then 6% for the second and third years. We feel that an offer of 5% for the second and third year basically means a wage freeze. We think that's too low. We think that essentially we are bickering over what we would say is a 1% difference, and we think the employers can at least meet us on that demand."

Hlubi-Majola said that union members will hold general meetings this week to decide whether to proceed with a strike or push for further talks.

She added that a 48-hour strike notice could be issued at any time if members givethe go-ahead.

"We're going to have general meetings with our members in the coming days for them to decide and advise us on whether or not we go and strike in the near future, or if they would like us to try and push for further negotiations."

Hlubi-Majola argued that auto companies have enjoyed strong profits in recent years, supported by government incentives, and can afford to meet the union’s "reasonable" 1% adjustment.

She said that NUMSA remained open to negotiation but insisted that employers show transparency about their earnings before expecting workers to settle for less.

"The challenges that workers are dealing with in the auto sector are a very high cost of living caused by high energy costs, by fuel costs. The fact that more than 50% of their income goes towards electricity and transportation, and we're saying that a 5% increase does not go far enough, particularly given that the union has compromised significantly since the wage talks began."

To listen to Hlubi-Majola in conversation with 702 and CapeTalk's Africa Melane, use the audio player below: