NUMSA Secures Wage Hikes Outpacing Inflation in the Motor Sector

Johannesburg – The National Union of Metalworkers of South Africa (NUMSA) has announced the successful conclusion of a wage agreement in the Motor sector that surpasses inflation rates.

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

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

“This marks the first instance where such a benefit has been negotiated, and we are thrilled that this round of talks has established a precedent allowing the lowest-paid workers to access quality private healthcare.”

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

Members of MIBCO are represented by both 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, as well as aftermarket sales and parts suppliers.

Jim underscored that NUMSA is the sole union making significant contributions to improving the lives of garage workers and continues to advocate for better employment conditions.

The agreement is effective for three years, commencing on 1 September 2025 and concluding on 31 August 2028.

The prior agreement will end on 31 August 2025.

NUMSA has outlined the wage agreement as follows:

1. Component Manufacturers (Sector 1: Chapter III):
Wage increases will be applied based on current pay rates and are structured as:

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

All workers in Sector 1, Chapter III will now receive overtime pay calculated at 1.5 times their regular hourly wage, replacing the previously reduced rate.

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

In this negotiation, NUMSA successfully secured guaranteed benefits as follows:

• Sick benefits: Employees in the Sick, Accident & Maternity Fund will receive full pay for the first 10 days of sick leave and 50% pay for the final 5 days.
• Death benefits: Up to R50,000 in the event of a member’s death.
• Accident benefits: 75% of the member’s daily pay for any working day certified by a medical practitioner for work prevented due to an accident.
• Maternity benefits: Female members may qualify for a maternity benefit of 30% of their daily pay for a maximum of 17 weeks after the waiting period.

3. Garage Workers (Sector 5)
Wage increases will adhere to the existing wage model during these 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 highlighted that wage increases for Sector 5 will depend on the approval and implementation of a retail margin adjustment by the Minister of Minerals and Petroleum Resources, which will compensate fuel retailers for the heightened wage costs during the agreement’s duration.

Upon adjusting the retail margin, all employers, regardless of affiliation with MIBCO, will be legally required to implement the regulated wage increases for garage workers (Sector 5).

To activate the Primary Healthcare benefit, a monthly healthcare deduction 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 put processes in place to oversee the implementation of Medical Insurance similar to those for provident funds.

Criteria and procedures will be determined by all parties by 31 October, aiming for medical insurance to be implemented on or before 1 January 2026.

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

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

5. Sector 6 (Car Dealerships)
Wages will also increase based on the minimum pay rates for relevant grades:

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

“The union’s immediate priority is to expedite the ratification of this agreement within MIBCO and to engage the Department of Labour to facilitate its gazetting and extension to non-parties,” stated Jim.

“We urge the minister to prioritize the gazetting of the agreement to enable workers to quickly enjoy their well-deserved wage increases.”

“NUMSA expresses gratitude to all Shop Stewards and officials who dedicated considerable time to negotiate this agreement.”

“NUMSA remains a staunch advocate for workers, ensuring that their lives improve with each wage deal we secure.”