NUMSA Secures Wage Hikes Outpacing Inflation in the Motor Industry

August 24, 2025 stocks24

Johannesburg – The National Union of Metalworkers of South Africa (NUMSA) has proclaimed that it has reached a wage agreement within the Motor sector that surpasses inflation rates.

Irvin Jim, NUMSA General Secretary, shared his satisfaction regarding the results of the latest negotiations on Sunday, 24 August 2025.

“We have successfully secured wage increases that outpace inflation, and for the first time, we have introduced primary healthcare benefits for garage workers (Sector 5),” said Jim.

“This marks the first negotiation of such a benefit, and we are thrilled that these discussions have established a precedent allowing the lowest-paid workers to access quality private healthcare.”

The sector comprises over 300,000 workers represented by the Motor Industries Bargaining Council (MIBCO).

Within MIBCO, employers are represented by the Retail Motor Industry Organization (RMI) and the Fuel Retailers Association (FRA).

This sector includes employees working in motor component manufacturing, petrol stations, car dealerships, vehicle body construction, tyre shops, along with after-market sales and parts supply.

Jim highlighted that NUMSA is the only union making significant strides in enhancing the living conditions of garage workers while advocating for better employment terms.

The agreement is effective for three years, commencing on 1 September 2025 and concluding on 31 August 2028.

The previous agreement will lapse on 31 August 2025.

NUMSA outlined the wage agreement as follows:

1. Component Manufacturers (Sector 1: Chapter III):
Wage increases will be based on the current pay rates structured as follows:

Year 1: 6% increase
Year 2: 5% increase
Year 3: 5% increase

All workers in Sector 1, Chapter III will now receive overtime pay calculated at 1.5 times their standard hourly rate, replacing the previous reduced rate.

2. Sick, Accident & Maternity Fund – for RMI Participating Employers
Since 2015, NUMSA members have endured discrimination as benefits in the Sick and Accident Fund were reduced, resulting in lower pay-outs than other workers.

In this negotiation, NUMSA secured assured benefits as detailed below:

Sick benefits: Members in the Sick, Accident & Maternity Fund will receive full pay for the first 10 days of sick leave and 50% pay for the last 5 days.
Death benefits: Up to R50,000 in the case of a member’s death.
Accident benefits: 75% of the member’s daily pay for any working day certified by a medical practitioner due to an accident.
Maternity benefits: Female members may qualify for a maternity benefit of 30% of their daily pay for a maximum of 17 weeks, after the waiting period.

3. Garage Workers (Sector 5)
Wage increases will follow the existing wage model for these periods:

Forecourt Attendants:
Year 1: 6% increase
Year 2: 5% increase
Year 3: 4% increase

Cashiers:

Year 1: 6% increase
Year 2: 4% increase
Year 3: 4% increase

Chars:

Year 1: 6% increase
Year 2: 4% increase
Year 3: 4% increase

NUMSA indicated that wage increases in Sector 5 will depend on the approval and implementation of a retail margin adjustment by the Minister of Minerals and Petroleum Resources to compensate fuel retailers for the increased wage costs throughout the agreement’s duration.

Once the retail margin is adjusted, all employers, regardless of MIBCO affiliation, will be legally obligated to enforce the mandated wage increases for garage workers (Sector 5).

To implement the Primary Healthcare benefit, a monthly deduction for healthcare will appear as an allowance on payslips, structured as follows:

Year 1: R85 deduction
Year 2: R90 deduction
Year 3: R95 deduction

The MIBCO administration will create processes to oversee the implementation of Medical Insurance similar to those for the provident funds.

All parties will establish criteria and procedures by 31 October, targeting for the medical insurance to be operational on or before 1 January 2026.

4. All Other Sectors (Excluding Sector 1: Chapter III and Sector 5)
Salary and wage increases will be aligned with the minimum pay rates for respective grades over the following periods:

Year 1: 5% increase
Year 2: 5% increase
Year 3: 5% increase

5. Sector 6 (Car Dealerships)
Wages will also increase in accordance with minimum pay rates for applicable grades:

Year 1: 5% increase
Year 2: 5% increase
Year 3: 5% increase

“The union’s immediate focus is to expedite the endorsement of this agreement within MIBCO and to engage the Department of Labour to facilitate its gazetting and extension to non-parties,” stated Jim.

“We call upon the minister to prioritize the gazetting so that workers can quickly benefit from their much-deserved wage increases.”

“NUMSA expresses appreciation to all Shop Stewards and officials who invested significant time to negotiate this agreement.”

“NUMSA remains a staunch advocate for workers, ensuring their lives are improved with every wage deal we secure.”