South African unions reach wage agreement in the automotive industry above inflation levels

South Africa's largest trade union representing 90,000 members in its automotive industry has signed a wage agreement that exceeds the inflation rate. The South African Metalworkers Union stated in an email on Sunday that the three-year staggered agreement, effective from September 1, includes a maximum increase of 6%. The union had previously sought a 10% wage increase. This agreement for the first time includes basic medical benefits for employees in automotive repair shops. The statement said, "We are pleased that this round of negotiations has laid the foundation for providing quality private medical services to the lowest-paid workers." Data from South Africa's statistics office shows a 3.5% year-on-year increase in consumer prices in July. The Governor of the South African Reserve Bank stated that inflation is expected to rise in the coming months but will fall back to around 3% in the medium term.