NUMSA statement on the Motor Sector wage agreement

The National Union of Metalworkers of South Africa (NUMSA) is pleased to announce that on 18 November 2016 it signed a settlement agreement with the Retail Motor Industry Organisation (RMI), and the Fuel Retailers Association (FRA), which covers workers in the motor retail, service, maintenance sectors of the industry and the automotive components manufacturing sector.
The Motor Industry Staff Association (MISA) has refused to sign, citing unhappiness with the RMI regarding the car dealer employees essentially not receiving any increase. The National Employers’ Association of South Africa (NEASA) said they will revert on Friday to advise whether they will sign or not.
NUMSA, RMI and FRA constitute the majority parties to the Motor Industry Bargaining Council (MIBCO) and resolved to submit the provisions of the agreement to the Ministry of Labour to extend it to the non-parties.
The union thanks all its negotiators for the hard work they have done in a very difficult and long-drawn-out negotiation, and all its members for their patience over this long period.
We are pleased that they have accepted the offer, under which employees of automotive component manufactures will receive across the board increases of:
 Year 1: 8.5%
 Year 2: 8%
 Year 3: 7.5%
The wage threshold will increase by the same percentages as the wages over the three-year period. The parties to the agreement  have also agreed to participate in a research process aimed at establishing the feasibility, viability and sustainability of all or some component manufacturing establishments of amending the cycle of this, and possible future agreements of this nature, to align it to other sectors in the automotive value chain which fall outside the jurisdiction of the Motor Industry Bargaining Council (MIBCO), provided further that this agreement in no way whatsoever will guarantee a specific or pre-determined outcome of this research process .
The effective date will be as published by the Minister of Labour in the Government Gazette. The RMI however has undertaken to recommend its members to implement the terms of this agreement with effect from 01 September 2016, provided that where an employer has elected to implement these terms retrospectively, it shall be immune to any industrial action that may arise as a consequence of any dispute in any other sector of the industry, with the express understanding that such industrial action will be automatically be unprotected.
Workers in all other sectors, except Sector 5 (Fuel Stations), will receive the following increases:
 Year 1: 7%
 Year 2: 7%
 Year 3: 7%
Wages and salary increases in the case of Sector 5 (Fuel Stations) will be subject to the Minister of Energy approving and implementing a retail margin adjustment to compensate retail petroleum establishments for such addition wage adjustments during the duration of this agreement.
Wage and salary increases will be based on the current wage model for the following periods:
Forecourt attendants
 Year 1: 10%
 Year 2: 8%
 Year 3: 8%
 Year 1: 7.5%
 Year 2: 7%
 Year 3: 7%
 Year 1 : 7.5%
 Year 2: 7.5%
 Year 3: 7.5%
Numsa will do everything possible to ensure that these increases are paid without delay to all the workers in all the sectors.
Irvin Jim, Numsa General Secretary: 073 157 6384
Patrick Craven, Acting Spokesperson: 083 376 7725