Mibco and Numsa Agreement

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MIBCO and NUMSA Reach Agreement on Wages and Benefits for Motor Industry Workers

The Motor Industry Bargaining Council (MIBCO) and the National Union of Metalworkers of South Africa (NUMSA) have finally reached a settlement after months of negotiations and a strike threat. The agreement, which covers about 80,000 employees in the automotive sector, includes wage increases, improved allowances, and additional benefits for certain categories of workers.

The main terms of the MIBCO and NUMSA agreement are as follows:

– A wage increase of 5% for all workers in the first year and 4.5% for the second and third year of the agreement, effective from July 2021 to June 2024. This means that the minimum wage for employees who complete their probation period will rise from R3,977 per month to R4,176 per month in the first year, and to R4,368 per month in the third year. The new rates will also apply to learnerships, apprenticeships, and disabled employees, with some adjustments for specific occupations or regions.

– An increase in the transport allowance from R30 to R40 per day, and a new tool allowance of R200 per month for certain categories of artisans, effective from August 2021.

– The introduction of a new family responsibility leave provision of up to five days per year, which may be taken as single or consecutive days, and will not be deducted from annual leave or sick leave. This benefit aims to assist workers who need to attend to urgent or unforeseen family events, such as funerals, births, or medical emergencies.

– The extension of the existing funeral benefit to cover parents, parents-in-law, and step-parents, as well as an increase in the benefit amount from R10,000 to R15,000 for all members, effective from November 2021.

– The establishment of a joint task team to review and improve the maternity, paternity, and adoption benefits, as well as the sick pay provisions, within six months of the signing of the agreement.

The MIBCO and NUMSA agreement also includes a commitment to promote skills development, health and safety, and affirmative action in the motor industry, and to resolve disputes through the established grievance procedures. The parties have agreed to monitor and review the implementation of the agreement regularly, and to initiate the negotiations for the next wage agreement at least six months before the expiry date of this one.

The settlement of the MIBCO and NUMSA dispute comes after some tense moments, where the union declared a deadlock and threatened to call for a strike if its demands were not met. However, the intervention of the Commission for Conciliation, Mediation, and Arbitration (CCMA) facilitated a re-engagement between the parties, which eventually resulted in a compromise. The MIBCO and NUMSA agreement reflects both the challenges and the opportunities of the post-pandemic economic recovery, where companies and workers need to balance their interests and aspirations in a changing and uncertain environment. As such, it provides a framework for a fair and sustainable collective bargaining process in the motor industry, where productivity and social justice can coexist.