The Automobile Manufacturers Employers Organisation (Ameo) and the National Union of Metalworkers of South Africa (Numsa) have signed a three-year wage agreement after nine rounds of negotiations and a declared deadlock at the National Bargaining Forum (NBF). The deal was concluded on Friday in Gqeberha.
The agreement follows several facilitated sessions held to break the impasse and secure a settlement both parties described as sustainable for the automotive sector. It is based on the final offer tabled by Ameo at the NBF plenary on October 30.
Under the terms of the deal, employees will receive a 7% across-the-board wage increase in the first year, backdated to July 1 2025. Increases of 5.5% will apply in the second and third years. The settlement also includes a one-off taxable gratuity of R12,500 for eligible workers.
Ameo said additional adjustments to transport and housing allowances, with improved short-time compensation, would strengthen employee benefits.
According to the organisation, the terms aim to balance worker remuneration with the long-term viability of an industry that contributes almost 5% to South Africa’s GDP and supports more than 130,000 direct and indirect jobs.
Speaking after the signing ceremony, Ameo chairperson Abey Kgotle said: “This agreement is a testament to the maturity of our social partnership under the NBF. Despite a challenging environment and a deadlock, all parties 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.”
Kgotle said the multi-year settlement demonstrates Ameo’s commitment to maintaining South Africa’s status as a competitive automotive hub.
“In an industry facing global headwinds and the accelerating transition to new-energy vehicles, stability is not optional — it is essential. This agreement reinforces the foundation on which we can continue to invest, innovate and protect jobs across the value chain.”
Ameo thanked Numsa, the NBF facilitation team and other stakeholders for their participation during the negotiations. The organisation said it remained committed to ongoing social dialogue and labour relations that support economic growth.
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