Car Makers Agreed to Increase Wages by 10% in South Africa

In an attempt to end an eight-day strike of the workers, car makers like General Motors and Toyota have agreed to raise wages by 10% in 2010. Wages will be further raised by 9% in 2011 and 2012.

The decision of a double digit pay rise has been revealed in a statement released by the Automobile Manufacturers Employers Organization. It has also measured an estimated production loss of 1700 vehicles caused by the strike.

Chris Thexton, the chairman of the employers’ Organization, is naturally not happy with such loss and he has reacted very strongly. He said to the media, “It’s become a trend, not necessarily a good one from an economic point of view, for settlements in the double-digit region, and that’s way above inflation. There’s a high premium in this contract. It allows for the industry to get back up and running.”

National Union of Metalworkers of South Africa (also known as Numsa) has stated in a statement that the workers would resume works on 23 August. Numsa decided to go on strike on 11 August calling for a 15% pay rise, while the employers were offering just 7% increase.

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