24 August, 2010IMF affiliate National Union of Metalworkers of South Africa (NUMSA) ended their eight day strike after the Automobile Manufacturers Employers' Organization (AMEO) agreed to raise workers pay by 10 per cent in 2010.
SOUTH AFRICA: On Friday 20 August, 2010, NUMSA and AMEO signed an agreement to increase wages by 10 per cent in 2010, and nine per cent or consumer price index, whichever is the greater, in 2011 and 2012. NUMSA had been demanding a pay rise of 15 per cent across the board, compared to an earlier offer of seven per cent tabled by AMEO.
The settlement also included an agreement to stop using labour brokers by January 2011, extend medical, pension and other benefits to short-term employees, includes a 10 per cent allowance for carbon dioxide welders and spray painters at personal wage rates, and the extension of benefits to short-term contract staff.
The agreement is with the AMEO, representing all seven car manufacturing firms, BMW, Mercedes-Benz, Ford, General Motors, Nissan, Toyota and Volkswagen, and also two truck and bus manufacturing companies, Nissan Diesel and MAN Truck and Bus. The impact of the eight day strike is reported in the press to have resulted in a loss of production of 17,000 cars. Workers returned to their jobs on August 23, 2010.
A copy of the Heads of Agreement signed by NUMSA and AMEO is published on the IMF website here.