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NUMSA Secures Wage Hikes That Outpace Inflation in the Motor Industry

wired24

Johannesburg – The National Union of Metalworkers of South Africa (NUMSA) has confirmed that a new wage agreement has been reached in the Motor sector, surpassing inflation rates.

Irvin Jim, General Secretary of NUMSA, conveyed his pride in the results of the recent negotiations held on Sunday, 24 August 2025.

“We have achieved not only above-inflation wage hikes but also, for the first time, primary healthcare benefits for garage workers (Sector 5),” stated Jim.

“This is a groundbreaking instance of such benefits being negotiated, and we are thrilled that this round of discussions has established a benchmark for the lowest-paid workers to gain access to quality private healthcare.”

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

Employers within MIBCO are represented by the Retail Motor Industry Organization (RMI) and the Fuel Retailers Association (FRA).

This sector includes employees from motor component manufacturers, petrol stations, car dealerships, vehicle body builders, tyre shops, and after-market sales and parts suppliers.

Jim highlighted that NUMSA is the only union making significant strides to improve the living conditions of garage workers and continues to push for advancements in their employment circumstances.

The agreement will be in effect for three years, commencing on 1 September 2025 and concluding on 31 August 2028.

The preceding agreement is set to expire on 31 August 2025.

NUMSA explicated the terms of the wage deal as follows:

1. Component Manufacturers (Sector 1: Chapter III):
Wage increases will follow existing pay structures and are delineated as:

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

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

2. Sick, Accident & Maternity Fund – for RMI Participating Employers
Since 2015, NUMSA members have encountered disparities as benefits in the Sick and Accident Fund were reduced, leading to lower pay-outs compared to their counterparts.

During these negotiations, NUMSA secured guaranteed benefits as detailed below:

  • Sick benefits: Employees enrolled in the Sick, Accident & Maternity Fund will obtain full pay for the initial 10 days of sick leave and 50% pay for the subsequent 5 days.
  • Death benefits: Up to R50,000 upon the death of a member.
  • Accident benefits: 75% of the member’s daily wage for any working day validated by a medical professional when unable to work due to an accident.
  • Maternity benefits: Female members, after the waiting period, may qualify for a maternity benefit equivalent to 30% of their daily wage for a maximum of 17 weeks.

3. Garage Workers (Sector 5)
Wage increases will align with the current wage model over the following 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 noted 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, aimed at compensating fuel retailers for the increased wage costs during the term of the agreement.

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

For the implementation of the Primary Healthcare benefit, a monthly deduction for healthcare will be noted as an allowance on payslips, structured as follows:

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

The MIBCO administration will set up processes to manage the implementation of Medical Insurance similar to those for pension funds.

Criteria and procedures will be established by all parties by 31 October, with an aim for the medical insurance to be introduced by or before 1 January 2026.

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

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

5. Sector 6 (Car Dealerships)
Wages will similarly increase according to the minimum pay rates for relevant grades:

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

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

“We implore the minister to prioritize the gazetting of the agreement to ensure that workers swiftly benefit from their well-deserved wage increases.”

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

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