Nearly a year after the motor industry’s landmark three-year wage agreement was concluded in August 2025, its value extends well beyond annual wage increases. The agreement, which the National Union of Metalworkers of South Africa (NUMSA) described as delivering above-inflation increases for workers, continues to provide stability for employers and employees alike amid global economic uncertainty, geopolitical tensions and ongoing market volatility.
Covering more than 300,000 workers across the automotive motor sector, according to industry reporting by NUMSA, the agreement continues to demonstrate how collective bargaining can deliver stability and certainty for both employers and employees during uncertain times.
Collective bargaining is not only a globally recognised labour principle but also a constitutional right in South Africa. Section 23 of the Constitution guarantees workers, employers, trade unions and employers’ organisations the right to engage in collective bargaining. The International Labour Organisation (ILO) further identifies collective bargaining as a key mechanism for advancing fair wages, decent work and stable labour relations.
For South Africa’s motor industry, the agreement remains a powerful example of how structured negotiation can balance the needs of workers and businesses while helping the sector navigate economic volatility, inflationary pressures and global geopolitical disruptions.
Paulos Masemola, General Secretary of the Motor Industry Bargaining Council (MIBCO), says the agreement highlights the enduring value of collective bargaining as a mechanism for promoting industrial peace and sustainable growth.
“Collective bargaining creates stability,” says Masemola. “A three-year wage agreement provides certainty for employers and employees, while allowing the industry to navigate economic shocks without constant renegotiation.”
The August 2025 agreement secured annual wage increases of between 5% and 6% across various sectors of the industry. It also introduced a number of measures aimed at strengthening worker wellbeing and supporting industry sustainability.
Among the key provisions were the introduction of a primary healthcare benefit for forecourt attendants, cashiers and char employees employed at fuel retailers, improvements to the administration of the Sick, Accident and Maternity Fund, and a cap of 3% on apprenticeship wage increases to encourage skills development and make apprenticeships more affordable for employers.
Masemola says the healthcare component was intentionally designed as both a social and economic benefit.
“The medical insurance was introduced to support some of the industry’s most vulnerable workers,” he explains. “These employees often work shifts, interact with large numbers of customers and operate in challenging conditions. Access to primary healthcare benefits both employees and employers through improved wellbeing, earlier intervention and greater workplace productivity.”
The agreement also reflects the broader purpose of collective bargaining, which extends beyond wages to creating an organised and sustainable industry.
“The objective is to ensure that workers are protected from exploitation while businesses remain sustainable and able to create employment opportunities,” says Masemola. “The process is built around finding solutions that support both economic growth and decent work.”
According to the Motor Industry Staff Association (MISA), which participated in the negotiations, the agreement demonstrates how collective bargaining continues to deliver meaningful outcomes for workers while maintaining labour stability.
“Collective bargaining is the cornerstone of industrial peace in turbulent times,” says Hermann Körstens, MISA’s Chief Executive Officer: Strategy and Development. “It provides a structured and transparent platform where workers and employers can confront uncertainty together rather than in conflict. Through councils like MIBCO, disputes can be managed through engagement and negotiation instead of instability and confrontation.”
For employers, the process also provides an opportunity to directly influence outcomes. Employer organisations, including the Retail Motor Industry Organisation (RMI) and Fuel Retailers Association (FRA), participate in negotiations by contributing industry data, business insights and economic considerations that help shape sustainable agreements.
“The process is interest-based and focused on balancing the sustainability of businesses with the sustainability of employment,” says Masemola. “Employers and organised labour work together to consider economic realities and industry needs, supported by industry data, actuarial reports and economic reports which ultimately supports long-term certainty for all stakeholders.”
MISA believes this collaborative approach remains one of the bargaining council system’s greatest strengths.
“MIBCO plays a critical role as a neutral custodian, balancing employer and employee expectations through a fair and transparent process,” says Körstens. “It helps protect collective bargaining, maintain industrial peace and safeguard the rights and dignity of workers across the motor industry.”
As the agreement continues to guide the industry through its three-year term, it serves as a reminder that collective bargaining remains one of the most effective mechanisms for advancing economic development, achieving fairness, social justice, stability and shared prosperity. In an uncertain world, structured dialogue continues to deliver certainty where it matters most.