Motor Industry Concludes 2025 Wage Negotiations

The Retail Motor Industry Organisation (RMI) has successfully concluded 2025 wage negotiations, securing a three-year settlement that covers over 20,000 employers and 300,000 workers across South Africa's motor industry.

Dispute-Free Negotiations Mark Industry First Labour Director Jeffrey Molefe confirmed that negotiations, which began on April 10, 2025, concluded without any trade union declaring a dispute'making this the mostsuccessful collective bargaining process since South Africa's democratic transition. The agreement was signed on August 23, 2025, with trade unions MISA and NUMSA.

Sector-Specific Wage Increases

The settlement provides tailored increases across different industry segments:

Component Manufacturing receives the highest increases at 6% in year one, then 5% annually for years two and three on actual wages.

General Industry Workers (excluding fuel dealers) will see consistent 5% annual increases on minimum wages throughout the three-year period.

Apprentices and Learners receive 3% annual increases on minimum wages, supporting skills development initiatives.

Fuel Retail Workers benefit from increases that include medical insurance allowances:

Implementation Process

The agreement will be formally adopted at a Special MIBCO Council Meeting in September 2025, then submitted to the Minister of Employment and Labour for publication in the Government Gazette. Once published, the wage increases become legally binding across the industry, with implementation dates determined by the Minister.

Industry Stability Secured

Molefe emphasized that the agreement balances member mandates with business sustainability realities. The three-year framework provides crucial certainty for an industry employing hundreds of thousands of South Africans, demonstrating the potential for constructive labour relations while ensuring fair compensation and sustainable operations.