The National Union of Metalworkers of South Africa (NUMSA) has declared a deadlock in wage negotiations with employers in the Automotive Industry and has warned of possible strike action if employers do not improve their offer. The union also raised concerns about ongoing retrenchments at Ford, Aspen, and ArcelorMittal South Africa, as well as unethical practices in the private security sector.

NUMSA General Secretary Irvin Jim said the dispute with the Automotive Industry arose from employers’ insistence on linking wage increases to the current Consumer Price Index of 3.4 percent. Employers have offered wage increases of 6.5 percent in the first year and 5 percent for each of the following two years. NUMSA rejected the offer, calling it unfair and inadequate given the rising cost of living.

The union said it explained to the chief executives of the seven Original Equipment Manufacturers (OEMs) that wage negotiations in the industry have always been based on fairness and stability. “It is critical for the Automotive Industry to maintain stability so that South Africa can continue to attract investment,” NUMSA said. The union proposed that employers should increase their offer to 8 percent for the first year and 6 percent for the next two years, or alternatively, 7 percent for each of the three years.

NUMSA said that if employers insisted on smaller increases, they should at least disclose their financial records. The union demanded that the seven OEMs reveal how much they have benefited from government incentives such as the Automotive Investment Scheme and the Volume Assembly Localisation Allowance. It also called for disclosure of savings made through short-term and layoffs.

Negotiations continued until Thursday, 30 October 2025, but the employers only increased their offer to 7 percent for the first year and 5.5 percent for the next two years. NUMSA countered with a proposal of 7 percent for the first year and 6.5 percent for the following two years, which it was willing to recommend to members. However, the employers refused to move further, leading to a deadlock.

NUMSA has requested a certificate of non-resolution and will consult members of the seven OEMs on the next steps. “Workers will decide whether to issue a 48-hour notice for a strike,” the union said. NUMSA called on the CEOs of the OEMs to avoid a strike by increasing their offer by at least 0.5 percent for the next two years.

The union also raised alarm about ongoing retrenchments in several companies. At Ford Motor Company Southern Africa, NUMSA said Section 189A consultations were ongoing, but Ford had unilaterally offered voluntary severance packages without agreement. The union accused Ford of exploiting debt-burdened workers and failing to disclose its financials. NUMSA warned that it would issue a 48-hour strike notice if Ford proceeded with forced retrenchments.

At Aspen Pharmacare, NUMSA said it was challenging the company’s decision to retrench South African workers while shifting production to international subsidiaries. NUMSA accused Aspen of abandoning local workers to maximise profits and said it had written to the Public Investment Corporation, Aspen’s largest shareholder, to intervene. The union said Aspen had already retrenched 208 workers in June and issued notices for 923 more, later reduced to 656. NUMSA said it would file a legal application to challenge what it called unfair retrenchments.

NUMSA also addressed developments at ArcelorMittal South Africa, where the Labour Court ordered the company to return to consultations in line with the Labour Relations Act. The court found that ArcelorMittal had acted unfairly by proceeding with dismissals despite potential new ownership developments. NUMSA said the company had filed for leave to appeal the judgment to continue with retrenchments. The union has since returned to court seeking urgent relief.

NUMSA said that across all three companies, consultations under Section 189 had been superficial and unfair. The union called for genuine engagement from employers and full disclosure of financial information to allow for meaningful alternatives to job cuts.

The union also announced a protest march by security sector workers to the National Treasury. NUMSA accused security companies of corruption and of failing to pay over deductions for medical insurance and pension funds. “These employers continue to defraud workers by deducting money and not paying it to the service providers,” the union said. NUMSA is calling on the Minister of Finance to blacklist non-compliant companies and revoke their government contracts.

NUMSA urged security workers to join the protest and unite in defence of their rights. “Workers must stand together to defeat employers who are stealing from them,” the union said.

NUMSA said it remains open to further discussions with employers in the Automotive Industry to avoid a strike, but insisted that any agreement must reflect the real economic challenges facing workers. The union said it had shown flexibility by adjusting its demands, but employers’ refusal to move by 1 percent over three years had forced the dispute to a breaking point.

The union maintains that fair wage increases and job security are essential to sustaining productivity and stability across the automotive and manufacturing sectors.