South Africa’s largest union has signed an above-inflation wage increase on behalf of its 90,000 members in the motor industry.
The tiered agreement is for three years from 1 September, with the largest improvement pegged at 6%, the National Union of Metalworkers of South Africa said in an emailed statement Sunday.
The labor organization known as Numsa had previously been seeking a 10% raise.
For the first time, the wage deal also includes primary healthcare benefits for garage employees.
“We are pleased that this round of negotiations has ensured that the foundation has been laid for the lowest paid workers to receive access to quality private healthcare,” it said.
Consumer prices rose 3.5% in July from a year earlier, data from the statistics agency show.
Central bank Governor Lesetja Kganyago earlier this month said he expects inflation to pick up in the coming months before returning to around 3% in the medium term.
The motor industry employs 300,000 people who fall under the Motor Industries Bargaining Council and comprises component-manufacturing companies, fuel stations, car dealerships, tire shops, after-market sales, glass-fitting centers, car cleaning, car parts assembly and panel-beating workshops.
Employer organizations that are part of the council include the Fuel Retailers Association and the Retail Motor Industry Organization, Numsa said.
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