The National Union of Metalworkers of South Africa (NUMSA) says it has reached a deadlock in wage talks in the auto industry, warning that it could embark on a strike if employers do not return to the table with a fair offer.
Negotiations between NUMSA and the country’s seven major vehicle manufacturers — known as Original Equipment Manufacturers (OEMs) — broke down over the weekend after the companies offered a 6.5% wage increase for the first year, followed by 5% increases for the next two years.
NUMSA has rejected the offer outright, calling it “a serious provocation” and “an insult” to workers who have kept production lines moving despite economic pressures and job insecurity.
“This offer constitutes a serious provocation. It is an insult given that the auto sector is the leading sector in both the auto and manufacturing industries,” said NUMSA General Secretary Irvin Jim.
“Workers still need to afford transport, electricity, medical aid, and food. The industry can afford to do better.”
Living costs rising faster than wages
The union says the 3.4% Consumer Price Index (CPI) being used by employers to justify the offer does not reflect the real hardship workers face. NUMSA cited that the average cost of a household food basket rose to R5,313 in February 2025, while electricity tariffs increased by about 12% this year.
“Employers cannot expect workers to bear the brunt of current socio-economic conditions,” the union said.
NUMSA argues that the proposed offer would effectively result in a wage freeze and that the auto sector can afford higher increases, especially since other manufacturing subsectors — including steel, engineering, and plastics — have agreed to 7% wage hikes in the first year.
Call for transparency from auto companies
NUMSA is now demanding that all seven OEMs — including Toyota, BMW, Volkswagen, Isuzu, Ford, Nissan, and Mercedes-Benz — make full financial disclosures. The union wants access to audited financial statements, government incentives received, and income generated from the sale of credit certificates used in the industry.
The union believes that disclosing this data will show that the sector remains profitable, with high vehicle sales volumes and continued support through government incentives such as the Automotive Investment Scheme (AIS) and Production Incentive (PI) programmes.
“If sales are high and government continues to provide incentives, then there is no reason to claim that the industry cannot afford to pay workers decently,” said Jim.
Background: A crucial sector with a history of tough negotiations
The auto industry is one of South Africa’s most strategic and unionised sectors, employing around 30,000 workers directly at assembly plants and supporting tens of thousands more in component manufacturing and logistics.
In previous bargaining rounds, NUMSA secured wage increases of 8.5% in 2022, 7% in 2023, and 7% in 2024. The union says this history demonstrates that workers’ demands are reasonable and consistent with the industry’s profitability.
South Africa’s auto exports have also remained strong, with Germany, the UK, and Japan among its biggest markets. The sector accounts for about 5% of national GDP, meaning a strike could have serious economic consequences.
Strike warning and next steps
NUMSA says that unless employers improve their offer, it will have no choice but to call a strike once a certificate of non-resolution is issued by facilitators at the Commission for Conciliation, Mediation and Arbitration (CCMA).
The union has proposed an urgent meeting between the CEOs of the seven OEMs and NUMSA’s national leadership by Tuesday next week, saying both sides must move from their current positions to avoid a full-blown shutdown of the sector.
“If employers refuse to move, we will have no option but to strike. But it is not what workers want — we want a fair, living wage and a settlement that reflects respect for the people who build this country’s cars,” Jim said.
