The component manufacturing, fuel and automotive retail sectors have signed a three-year wage agreement.

Wage talks within the Motor Industry Bargaining Council (MIBCO) started on April 10 and concluded at the end of August.

Negotiations in the vehicle assembly sector are still ongoing.

The Retail Motor Industry Organisation (RMI) and the Fuel Retailers Association represented employers within MIBCO, while employees were represented by the Motor Industry Staff Association (MISA) and the National Union of Metalworkers of South Africa (Numsa).

RMI labour director Jeffrey Molefe describes the more than four-month-long engagement between labour and employers as “extensive and constructive”.

“The RMI is satisfied with the outcome of the MIBCO 2025 collective bargaining process, as it reflects the mandate of our members, while balancing the realities and sustainability of businesses across the motor industry.”

The three-year wage deal gives employees within the component manufacturing sector a 6% salary and wage hike in year one, and 5% in years two and three on the actual rate of pay.

The retail sector will see a 5% increase in years one, two and three on minimum wages, with pay hikes in the fuel retail sector at 6% in year one, 5% in year two and 4% in year three for forecourt attendants, with a 1% medical insurance allowance included each year.

Cashiers in the fuel retail sector will get a 6% pay hike in year one, and 4% in years two and three, again with a 1% medical insurance allowance each year.

MISA says this 1% will be afforded to employees in the form of an allowance towards primary health insurance over the duration of the agreement.

Employees will have a choice to opt in or out of the primary healthcare scheme set to be implemented on January 1 next year.

MISA signed the settlement agreement for the first time as the majority trade union in the retail motor industry.

Numsa says it is pleased with the above- inflation increases, as well as the primary healthcare benefit extended to service station workers.

“This is the very first time that such a benefit has been negotiated and we are pleased that this round of negotiations has ensured that the foundation has been laid for the lowest-paid workers to receive access to quality private healthcare.”

The three-year agreement is valid from September 1 and expires on the August 31, 2028.

The signed agreement will be submitted to the Minister of Employment and Labour for publication in the Government Gazette, with extension to non-parties.

Upon publication in the gazette, the wage increases will become compulsory for all employers and employees within the registered scope of MIBCO.

The effective implementation date will be determined by the Minister at the time of publication.