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The Retail Motor Industry Organisation (RMI), in collaboration with trade unions MISA and NUMSA, has successfully concluded the 2025 wage and substantive negotiations under the Motor Industry Bargaining Council (MIBCO). This landmark three-year agreement, signed on 23 August 2025, is being hailed as one of the most constructive and dispute-free negotiations in South Africa’s post-democratic era.

Negotiations officially commenced on 10 April 2025, following the expiry of the previous collective agreement set for 31 August 2025. The process involved multiple rounds of bilateral and multilateral discussions facilitated by Commissioner Marius Kotze.

Initial proposals varied significantly:

• RMI proposed a 3% wage increase across all sectors.
• NUMSA demanded a 10% across-the-board increase.
• MISA proposed an 8% increase.

By the sixth round in July, NUMSA revised its demands to sector-specific increases, including healthcare allowances for fuel sector employees. The final agreement was reached after extensive deliberations and mutual concessions.

The three-year settlement agreement outlines differentiated wage increases across various sectors:

Component Manufacturing Sector

• Year 1: 6%
• Year 2: 5%
• Year 3: 5%
  (Based on actual wages)

Rest of the Industry (excluding Fuel Dealers)

• Year 1–3: 5% annually
  (Based on minimum wages)

Apprentices and Learners

• Year 1–3: 3% annually
  (Based on minimum wages)

Fuel Retailers Sector

Forecourt Attendants:

• • Year 1: 6% (includes 1% medical insurance allowance)
  • Year 2: 5% (includes 1% medical insurance allowance)
  • Year 3: 4% (includes 1% medical insurance allowance)

Cashiers and Chars:

• • Year 1: 6% (includes 1% medical insurance allowance)
  • Year 2: 4% (includes 1% medical insurance allowance)
  • Year 3: 4% (includes 1% medical insurance allowance)

The signed agreement will be formally adopted at a Special MIBCO Council Meeting in September 2025. It will then be submitted to the Minister of Employment and Labour for publication in the Government Gazette, making the wage increases legally binding for all employers and employees within MIBCO’s scope.

Jeffrey Molefe, RMI Labour Director, emphasised that the agreement reflects the mandate of RMI members while ensuring the sustainability of businesses across the motor industry. The absence of disputes throughout the process marks a significant achievement in South Africa’s labour relations landscape.

This agreement brings certainty, stability, and predictability to over 20,000 employers and 300,000 employees in the motor industry, spanning diverse sub-sectors from component manufacturing to fuel retail.