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Union Offers Two-Year Deal to End South African Strike

The National Union of Metalworkers of South Africa is offering a two-year deal to end strikes that have idled the country's auto industry.
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The National Union of Metalworkers of South Africa is offering a two-year deal to end strikes that have idled the country's auto industry.

NUMSA initially demanded a one-year contract with a 10% pay hike and housing allowance. Last week the union rejected a counteroffer by employers for a three-year contract that would raise wages 10% the first year, 9.5% the second year and 9% the third year.

South Africa's inflation rate is at a five-year high of 6.6%. The country's economy is struggling to recover from a five-month walkout of platinum mineworkers that ended in June.

NUMSA's new offer would hike pay 10% in each of two years. In the meantime, its general strikes that began July 1 have shut down parts suppliers and idled assembly operations at BMW, GM, Ford, Nissan and Toyota.

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