After numerous deadlocks, NUMSA & vehicle manufacturer associations reach wage deal

Trade union NUMSA and automobile manufacturers' associations have finally reached a wage agreement after numerous deadlocks during negotiations.

The association has offered to increase its employees' wages by 7% in the first year and 5.5% in the following two years.

NUMSA says most of its members have accepted this three-year wage increase offer.

Trade union spokesperson Phakamile Hlubi-Majola said that their members will get a five-month back date of their wage payment.

"This is a three-year wage agreement starting from the 1st of July, 2025 and expiring on 30 June, 2028. The agreement is broken down in the following way: 7% increase for the first year, which is applicable from the 1st of July, 2025 and will be backdated and 5.5% or CPI, whichever is greater, for the second year and also for the third year."

Hlubi-Majola added that, along with the agreements which were made, there would also be an increase in the transport allowance.

"There's also an increase in transportation and a clause regarding short time, and of course, NUMSA has also negotiated a once-off taxable gratuity payment of R12,500, which will be paid to each employee in the bargaining unit in the next payroll cycle."

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