In a decisive breakthrough that prevents looming industrial action, the National Union of Metalworkers of South Africa (NUMSA) and the Automobile Manufacturers Employers Organisation (AMEO) have concluded a far-reaching three-year wage agreement, restoring stability to one of South Africa’s most strategically important sectors.

Finalised on November 14, 2025 in Gqeberha, the deal ends months of tense negotiations and covers workers at seven major automotive plants, including BMW, Ford, Toyota, Volkswagen, Isuzu, Nissan, and Mercedes-Benz — a cluster representing some of the country’s most influential industrial employers.

AMEO negotiated the agreement under the National Bargaining Forum framework.

Key terms of the agreement

The multi-year deal — valid until June 30, 2028 — includes the following:

Wage increases

• Year 1 (2025/26): 7% across-the-board increase, backdated to 1 July 2025
• Year 2 (2026/27): 5.5% across-the-board increase
• Year 3 (2027/28): 5.5% across-the-board increase

Additional gains for workers

• R12,500 once-off, strike-free gratuity
• Improved transport and housing allowances
• Enhanced short-time compensation

The deal outpaces South Africa’s inflation rate of 3.4%, delivering real wage gains for workers in an industry employing more than 130,000 people directly and indirectly.

Stakeholder reactions

AMEO’s perspective

AMEO Chairperson Abey Kgotle praised the agreement as:

“A testament to the maturity of our social partnership… all parties ultimately prioritised stability, competitiveness, and the long-term sustainability of the automotive manufacturing sector.”

NUMSA’s position

NUMSA Secretary-General Irvin Jim welcomed the “above-inflation” settlement, emphasising that the union followed a rigorous member-mandated process before accepting the offer.

The majority of plants had instructed leadership to sign the improved package.

Broader industrial implications

The agreement arrives at a critical time for South Africa’s automotive ecosystem, which faces:

• Escalating global competition, particularly from China and India
• Supply chain vulnerabilities and export tariff risks
• Pressure to shift towards new-energy vehicle (NEV) production
• Declining domestic sales and below-capacity factory utilisation

The clarity provided by the settlement enables manufacturers to focus on investment continuity, export predictability, and skills development, while safeguarding employment.

How the deal was reached

The negotiation path unfolded as follows:

• October 2025: Talks deadlocked; AMEO offered 6.5% (year one) and 5% (years two and three)
• Late October: Offer raised to 7%, 5.5%, 5.5% — NUMSA sought further clarity
• Early November: CCMA issued certificate of non-resolution, opening the way for a strike
• November 14: Final agreement signed in Gqeberha, preventing disruptions that would have weakened export competitiveness

South Africa’s / NUMSA 2025 wage negotiation snapshop

As highlighted below, South Africa has seen several high-profile, above-inflation wage outcomes across key sectors this year. Together, they illustrate broader pressures on employers — and growing worker expectations — across the economy.

1. Public Service Wage Agreement (2025–2028)

Reached via the Public Service Co-ordinating Bargaining Council (PSCBC), this deal secured:

• 5.5% pensionable salary increase for 2025/26
• CPI-linked salary adjustments for 2026/27 and 2027/28

It applies to salary levels 1–12, stabilising wage structures across the public service for three years.

2. Tyre Manufacturing Sector (NUMSA – NTMEA, Nov 2025)

NUMSA signed another above-inflation three-year deal with Bridgestone SA, Continental Tyres SA, and Sumitomo Rubber SA:

• 5.5% increase (2025, backdated)
• 5% increase (2026)
• 5% increase (2027)
• Progressive adjustments moving workers to maximum grade rate by June 2028
• A jointly funded housing contribution (10c/hour from both parties), now elevated to the bargaining council for implementation

3. Ongoing Negotiations: Eskom (NUM – 2025))

The National Union of Mineworkers (NUM) has tabled a 15% wage increase demand for 2025/26.
Given Eskom’s centrality to national infrastructure and ongoing restructuring, this remains one of the most critical negotiations in South Africa.

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