Gqeberha, Eastern Cape, 17 November 2025 — The Automobile Manufacturers Employers Organisation (AMEO) has announced the successful conclusion of a multi-year wage agreement with the National Union of Metalworkers of South Africa (NUMSA), bringing an end to protracted negotiations under the National Bargaining Forum (NBF).
Following nine rounds of discussions and a period of declared deadlock, the agreement, signed today in Gqeberha, Eastern Cape, reflects a shared commitment to fairness, stability, and the long-term sustainability of South Africa’s automotive manufacturing industry.
Key Highlights of the Agreement
The settlement, representing AMEO’s full and final offer tabled at the NBF Plenary on 30 October 2025, includes:
- A 7% across-the-board (ATB) wage increase in Year 1, backdated to 1 July 2025.
- 5.5% ATB increases in Years 2 and 3.
- A R12 500 once-off strike-free taxable gratuity for all eligible employees.
- Enhanced employee benefits, including increased transport and housing allowances, and improved short-time compensation.
These provisions ensure that automotive manufacturing employees continue to enjoy some of the most competitive remuneration packages in South Africa’s industrial landscape.
Balancing Fairness and Competitiveness
AMEO Chairperson, Abey Kgotle, underscored the broader significance of the agreement. “This settlement is a testament to the maturity of our social partnership under the National Bargaining Forum. Despite challenging circumstances and a temporary deadlock, all parties prioritised stability, competitiveness, and the long-term sustainability of our sector,” said Kgotle.
He added that the multi-year nature of the agreement provides certainty for workers, employers, and global investors alike. “In an industry facing global headwinds and a rapid transition to new-energy vehicles, stability is not optional — it is essential. This agreement reinforces the foundation for continued investment, innovation, and job protection across the automotive value chain.”
A Commitment to Social Dialogue
AMEO extended its gratitude to NUMSA, the NBF facilitation team, and all stakeholders who contributed constructively throughout the negotiations. The Organisation reaffirmed its commitment to responsible labour relations and ongoing social dialogue that support sustainable growth and the competitiveness of South Africa’s automotive manufacturing sector, which contributes nearly 5% to GDP and supports over 130 000 direct and indirect jobs.
Looking Ahead
The successful conclusion of this wage agreement represents not only a shared step forward for employers and employees but also a strategic move to safeguard South Africa’s position as a globally competitive automotive hub. As the industry navigates evolving challenges, such partnerships will remain central to driving innovation, protecting jobs, and sustaining economic growth.
