We are pleased to report progress in the Auto Sector negotiations. Workers have mandated us to settle on an agreement, whose main contents include the following:
1. A total wage increase of approximately 35% spread over 3 years, with 10% in the first year, 8% in the second year and 8% in the third year.
2. A transport allowance, currently R1200 per year, which will increase every year.
3. A shift allowance of 20% on signing, 21% on 01 July 2017, 22% on 01 July 2018 and 23% on 30 June 2019.
4. A short-time bonus of 50% of basic wage for first 20 days and 30% for the next 25 days. Employers to continue their 10 cents per hour contribution. Discussions on how to provide additional funding will take place at plant level
5. A housing solution to be developed. Employers are to contribute 3% of the wage bill to start off, with a joint effort to look for more funding. There will be a once-off subsidy of R5000 and monthly subsidy of R500 per month.
Please Download full copy of agreement: 2016 Auto Sector Agreement