The Automobile Manufacturers Employers Organisation (Ameo) and the National Union of Metalworkers of South Africa (Numsa) have finally signed a wage agreement, following a protracted process that included nine rounds of negotiations and a declared deadlock.

The three-year deal allows for a 7% across-the-board wage increase in the first year, backdated to July 1, 2025, and a 5.5% increase in both years two and three.

Eligible employees will also receive a R12 500 once-off taxable gratuity and improved employee benefits, including increased transport and housing allowances, as well as enhanced short-time compensation.

“This agreement is a testament to the maturity of our social partnership under the National Bargaining Forum,” says Ameo chairperson Abey Kgotle.

“Despite a challenging environment and a deadlock, all parties ultimately prioritised stability, competitiveness and the long-term sustainability of the automotive manufacturing sector.

“We appreciate the constructive engagement demonstrated throughout the process, and we believe this agreement provides certainty for workers, employers and global investors alike.”

AMEO represents BMW Group South Africa, Ford Motor Company of Southern Africa, Isuzu Motors South Africa, Mercedes-Benz South Africa, Nissan South Africa, Toyota South Africa Motors and Volkswagen Group Africa.