The National Union of Metalworkers of South Africa (NUMSA) has successfully negotiated a three-year wage agreement for workers in the plastics industry, securing above-inflation increases amid tough economic conditions.
The deal, signed under the Metals and Engineering Industries Bargaining Council (MEIBC), will see approximately 34,000 workers receive a 7% wage hike effective next month, lasting until June 2026. Subsequent increases of 6% will follow in June 2025 and another 6% in June 2026.
NUMSA hailed the agreement as a “victory” for workers struggling with the high cost of living. “This settlement will cushion employees and their families against rising expenses,” the union stated. The plastics sector, a subsector of the broader metals and engineering industry, employs tens of thousands nationwide.
Employers Commit to Sector-Wide Enforcement
NUMSA revealed that employers agreed to ensure the agreement is gazetted and extended to non-parties, reinforcing industry-wide compliance. The union initially pushed for terms mirroring those in the engineering sector, where a 7%-6%-6% structure was already secured.
“We were prepared to negotiate further, but in the end, we achieved a fair deal for workers,” a NUMSA representative said.
Outstanding Issues and Next Steps
While wages were settled, NUMSA confirmed that separate discussions will address housing assistance and medical insurance. Meanwhile, negotiations continue in the auto sector, with a critical meeting scheduled for June 13.
The union plans to engage CEOs on challenges facing the automotive industry, including calls for increased tariffs, localization targets, and industry protection measures. NUMSA aims to push the government toward a 60% localization goal by 2035.
Additionally, a dedicated committee will review job grading and entry-level wages using scientific models and expert input to ensure fair compensation structures.
Ongoing Motor Sector Talks
NUMSA remains in active negotiations within the motor industry, with further discussions expected later this week. The union emphasized the need for strategic interventions to stabilize the sector and protect jobs.
This wage agreement marks a significant step for plastic workers, but NUMSA’s broader battle for equitable wages and benefits continues across South Africa’s industrial sectors.