---
title: "South African unions reach automotive industry wage agreement above inflation levels"
description: "South Africa's largest union has reached a three-year wage agreement with the automotive industry, with increases exceeding the inflation rate, capped at 6%. The agreement takes effect from September "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/254329859.md"
published_at: "2025-08-24T16:47:05.000Z"
---

# South African unions reach automotive industry wage agreement above inflation levels

> South Africa's largest union has reached a three-year wage agreement with the automotive industry, with increases exceeding the inflation rate, capped at 6%. The agreement takes effect from September 1 and provides basic medical benefits for automotive repair shop employees for the first time. The union had sought a 10% wage increase. According to Statistics South Africa, consumer prices rose by 3.5% year-on-year in July. The central bank expects inflation to rise in the coming months but to fall back to around 3% in the medium term

South Africa's largest union, representing 90,000 members in the automotive industry, has signed a wage agreement that exceeds the inflation rate. The South African Metalworkers Union stated in an email on Sunday that this tiered agreement is valid for three years and takes effect from September 1, with a maximum increase set at 6%. The union had previously sought a 10% wage increase. This wage agreement is the first to include basic medical benefits for employees in automotive repair shops. The statement said, "We are pleased that this round of negotiations has laid the foundation for quality private healthcare services for the lowest-paid workers." According to Statistics South Africa, consumer prices rose by 3.5% year-on-year in July. The Governor of the South African Reserve Bank indicated that inflation is expected to rise in the coming months but will fall back to around 3% in the medium term

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.