Auto strike threat looms, NUMSA slams low offers

South Africa’s automobile production industry may experience work stoppages after negotiations between manufacturers and the National Union of Metalworkers of South Africa collapsed during discussions held last week. Union representative Phakamile Hlubi-Majola stated that management offered annual salary increases of 6.5 percent during year one, followed by 5 percent raises in subsequent years, while September 2025 inflation stood at 3.4 percent. The labor organization proposed a counteroffer of 7 percent for the initial period and 6 percent during years two and three, asserting that the employer proposal effectively freezes compensation.

Union members will convene at workplace assemblies during the coming days to determine whether strike authorization should proceed or if additional bargaining sessions might resolve the impasse. Hlubi-Majola noted that if workers approve the action, a 48-hour advance notification could be issued immediately. She argued that automotive firms have recorded substantial earnings recently while receiving governmental subsidies, making the 1 percent adjustment request achievable. Workers face mounting expenses for electricity and transportation that consume over half their paychecks, she said, adding that the organization remains willing to negotiate if companies disclose financial performance data before demanding employee concessions.