Auto employers optimistic on talks

Automotive sector employers have broken their silence on the protracted wage talks with the National Union of Metalworkers of SA, saying they are looking “promising”.

Automotive sector employers have broken their silence on the protracted wage talks with the National Union of Metalworkers of SA (Numsa), saying that they are looking “promising”.

The Automobile Manufacturers Employers Organisation (Ameo) held another round of negotiations with Numsa in Pretoria from Monday to Wednesday aimed at reaching an agreement and averting a strike.

Ameo spokesperson Andile Dlamini said Wednesday’s session signalled the last round of talks for this week.

“The negotiations are still ongoing. There is some promising process [unfolding],” Dlamini said, without elaborating.

The employers have offered Numsa a 4.5% increase, in line with the country’s inflation rate, although economists expect the rate to moderate to 4.4%.

Ameo’s offer is nearly threequarters less than the 20% pay increase across the board that Numsa wants.

Analysts say the 4.5% offer underlines the weak finances and sales in the sector, which is grappling with lower consumer spending on big items.

Data released by the National Association of Automobile Manufacturers of SA (Naamsa) in July showed that the new passenger car market registered a decline of 8.2% from July 2018 to 29,477 units.

Naamsa said that out of the total reported industry sales of 46,077 vehicles, about 80.2%, represented dealer sales; an estimated 14% sales to the vehicle rental industry; 3.6% to industry corporate fleets; and 2.2% to the government.

The automotive sector contributes more than 7% to GDP, which contracted 3.2% in the first quarter of 2019.

Numsa’s other demands include morning, afternoon and night allowances of 10%, 20% and 30%, respectively.

In addition, the trade union is demanding an annual bonus increase from 8.33% to 12%, six months’ paid maternity leave and 10 days’ paid paternity leave, as well as a R5,000 monthly transport allowance.

Numsa also wants clerks, welders, spray painters and metal-finish workers to be paid a 20% allowance.

The union has not ruled out embarking on industrial action to force employers to accede to their demands should the wage talks fail.

Numsa auto and tyre coordinator Vusumzi Mkhungo and national treasurer Mphumzi Maqungo could not immediately be reached for comment.

INDUSTRY BODY’S OFFER IS NEARLY THREE-QUARTERS LESS THAN THE 20% INCREASE ACROSS THE BOARD THAT NUMSA WANTS