South Africa’s motoring sector has welcomed the announcement of a new wage agreement between AMEO and NUMSA, a development that has prevented what could have been one of the most damaging strikes in recent years.
After nine rounds of negotiations and a formal deadlock, both parties reached a settlement during a signing ceremony in Gqeberha, bringing much needed certainty to a sector that contributes nearly 5 per cent to the national economy.
The agreement includes a 7 per cent Across the Board wage increase for the first year, backdated to 1 July 2025, followed by 5.5 per cent increases in the second and third years. Workers will also receive a once off taxable gratuity of R12 500, alongside improved transport and housing allowances. Enhanced short time compensation adds another layer of security for employees while supporting stable operations for manufacturers.
AMEO Chairperson, Abey Kgotle, described the outcome as a significant achievement. “This agreement is a testament to the maturity of our social partnership under the National Bargaining Forum. Despite a challenging environment and a deadlock, all parties ultimately prioritised stability, competitiveness and the long term sustainability of the automotive manufacturing sector.” Abey emphasised that the stability created by the agreement benefits not only manufacturers but also retailers, dealers and motorists who rely on uninterrupted vehicle production.
He also highlighted the importance of certainty in a rapidly shifting global landscape. “In an industry facing global headwinds and the accelerating transition to new energy vehicles, stability is not optional, it is essential.”
NUMSA and AMEO both acknowledged the constructive role of the facilitation team and expressed appreciation for the collaborative spirit maintained throughout the negotiations. For the motoring public, the agreement ensures continued availability of locally produced vehicles, steady supply to dealerships and uninterrupted access to aftersales support.
As the industry navigates technological change, fluctuating demand and global economic pressures, the conclusion of this agreement provides a solid foundation for ongoing investment, job protection and consumer confidence across South Africa’s motoring landscape.
