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S.Africa’s NUMSA rejects new wage offer, engineering strike continues By Reuters

© Reuters. FILEPHOTO: South Africa’s National Union of Metalworkers (NUMSA), members of which hold placards in preparation for an indefinite strike. The indefinite strike threatens to halt supplies of car parts.

CAPE TOWN (Reuters). South Africa’s most powerful engineering union NUMSA has rejected a new wage proposal as a result of a nationwide strike which already hampered output at BMW. This strikes enters its second weekly period on Thursday. SEIFSA, the employer body, stated.

Since Oct. 5, the National Union of Metalworkers of South Africa has been on strike with approximately 155,000 members. They are attempting to demand higher wages and could be affected by supplies of accessories and parts.

BMW, a luxury automobile manufacturer, announced Monday that it had lost production at the main South African assembly plant after a series of suppliers suffered.

Lucio Trentini chief executive of the industry body Steel and Engineering Industries Federation of Southern Africa, told Reuters: “Regrettably, at the end of last night’s meeting we could report that we don’t have an agreement.”

“We will gather this morning to plan the next steps. After NUMSA had made a revised offer last week, he said that the revised and better offer was rejected.

Following wage negotiations that were deadlocked and failed to resolve, NUMSA requested an 8% all-inclusive wage increase in the first year and inflation plus 22% in the second and subsequent years.

SEIFSA offered 4.4% in 2021 and inflation plus 0.5% 2022, respectively. Inflation plus 1% was also available in the third-year.

The NUMSA spokesperson did not respond to our request for comment, but she said that the group would hold a briefing with the media later in the day.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.