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The Automobile Manufacturers Association (AMEO) has signed a new three-year collective agreement with the National Union of Metalworkers of South Africa (Numsa). On Friday, Numsa`s general secretary, Irvin Jim, announced that the parties had signed a 3-year collective agreement of 9% for the first year and 7% for the two and third years (CPI), based on their highest value. .. The agreement provides for a 9% increase for employees in the first year and a 7% increase for the second and third year according to the consumer price index, or 7%, depending on the highest value. The National Union of Metalworkers of SA (Numsa), the country`s largest union, has signed a collective agreement with auto employers after months of intensive negotiations. Below are some details of the new collective agreement we signed: The National Union of Metalworkers of South Africa (NUMSA) has signed the three-year contract with the Motor Industries Bargaining Council (MIBCO). This sector represents workers in component companies, gas stations and car dealerships and employs approximately 306,000 workers. The transaction agreement, signed last week by the majority of NUMSA regions, is applicable from the date of publication and renewal and expires on August 31, 2022. However, the RMI recommended that its members implement the agreement as of December 1, 2019. „We welcome the collective agreement signed by NUMSA and AMEO, as it further improves working conditions in the South African automotive sector. As the industry 4.0 sector expands, we also welcome skills development initiatives that benefit workers.
The agreement will enter into force retroactively from July 1, 2019. It expires on June 30, 2022. „The agreement will help original equipment manufacturers based in South Africa achieve long-term planning, modeling and volume planning,“ said AMEO. Phakamile Hlubi-Majola, spokesman for Numsa, said the agreement includes an increase in the transport allowance and a one-time payment of 7500 R7500. September 13, 2019 By: Irma Venter Creamer Media Senior Deputy Editor We will continue to do everything we can to negotiate a deal that will benefit our members. But it seems until September 12, the parties have found the right balance. According to AMEO – which represents seven automakers, namely BMW, Ford, Isuzu, Mercedes Benz, Nissan, Toyota and Volkswagen – the agreement provides for a 9% increase in employees per hour in the first year and a 7% increase in line with consumer inflation in the second and third years. In addition, the seven MEMBERS of THE AMEO have planned, for the five-year period starting in 2019, an investment of R3 39.4 billion in capital and equipment of 9.4 billion, Dlamini said. We had initially called for a general wage increase of 15% for our members, recognizing the extreme suffering they are suffering as a result of lower wages. However, we opted for compromises because we wanted to save the negotiating council and ensure that the centralized negotiations were sustainable.
We are also aware of the sluggish economic situation affecting the economy and the impact it has had on businesses. We think this is the best deal, given the complexity of the situation we are in. In accordance with our worker-controlled principles, we have spent the last two weeks representing the views of all our members in the nine regions in order to obtain a mandate for the proposal. The majority of regions approved the proposal. The Automobile Manufacturers and Employers Association (AMEO) has successfully concluded negotiations at the National Bargaining Forum 2019 with the National Union of Metalworkers of South Africa (NUMSA) with the signing of a three-year contract.