South African Union also ends car parts industry strike image

After last month the strike at the carmakers ended, finally South African trade union NUMSA said it had reached a deal to end a four-week strike in the auto components sector as well.

Union officials told a news conference on Sunday that workers would receive a 10% pay increase in the first year of the accord and wage hikes of eight percent in the second and third years covered by the agreement.

“The strike was very hard for us,” Irvin Jim, the general secretary of the National Union of Metalworkers of South Africa (NUMSA), told the news conference.

The four-week strike by more than 30,000 workers at major automakers including BMW, Ford, Nissan and General Motors that ended last month cost the industry $2 billion in lost output.

South African vehicle sales fell for a second month in September and exports dropped 75% as strikes hit carmakers’ operations, the Pretoria-based National Association of Automobile Manufacturers of South Africa said in an e-mailed statement on Oct. 1.

South African workers in mining, construction and aviation have also gone on strike this year to demand higher salaries, disrupting production and curbing economic growth.

Via Reuters, Bloomberg