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Workers, Carmakers in S. Africa Settle Three-Week Strike
Members of the National Union of Metalworkers of South Africa are scheduled to return to work today at auto plants in the country after accepting a sweetened wage offer from carmakers.
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Members of the National Union of Metalworkers of South Africa are scheduled to return to work today at auto plants in the country after accepting a sweetened wage offer from carmakers.
The country's 30,000 autoworkers had been on a nationwide strike since Aug. 19. Affected companies included BMW, Daimler, Ford, General Motors, Nissan, Toyota and Volkswagen.
NUMSA and the National Assn. of Automobile Manufacturers of South Africa (NAAMSA) settled on an 11.5% wage hike this year and increases of 10% in 2014 and 2015. The pact also includes a premium for night shift work and a transportation allowance. The parties agreed to study healthcare and housing programs.
NAAMSA originally offered an 8% annual pay hike. The union sought a 14% annual wage increase and better benefits. The union says it is still working to resolve some specific issues at BMW and Toyota factories.
NAAMSA estimates the daily cost of the strike to the industry to be as much as 700 million rand (€52 million) and more than 3,000 units of lost production. South Africa produces about 600,000 vehicles per year, of which slightly more than half is exported.
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