NUMSA signs wage agreement with ArcelorMittal

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The National Union of Metalworkers of South Africa (NUMSA) has signed the wage agreement with ArcelorMittal South Africa (AMSA).

The agreement is for three years, running from April 1st to March 31st, 2026. All permanent employees in New Castle, Vanderbijlpark, Vereeniging, Pretoria, Durban, Richards Bay, and Saldanha are bound by this agreement that will be backdated to the 1st of April – which means that workers will also receive back pay.

The wage agreement for year one is broken down as follows:

  • 5% increase for year one; 6.5% for year two; and for year three the increase will be CPI but capped at 6.5%
  • A once-off cash signing bonus of R10 000
  • Medical aid subsidy to increase by 6.5% for year one; for year two it will increase by CPI but capped at 6.5%; for year three it will increase by CPI but capped at 6.5%.
  • The company contribution of medical aid will remain at 60% for the employer and 40% for employees for year one; for year two the medical aid contribution will increase to 65% and workers contribution will reduce to 35% subject to the medical subsidy cap. And for year three it will increase to 70% but employer contribution will reduce to 30% subject to medical aid subsidy cap.
  • All allowances will increase by 6.5%; for year two all allowances will increase by CPI but capped at 6.5% and for year three, 6.5% increase for all allowances.
  • Paternity benefit will increase from 10 to 12 days
  • Funeral benefit will increase from R10 000 to R20 000 in the first year of the agreement.

Spokesperson, Phakamile Hlubi-Majola says, “We welcome the signing of this agreement particularly because at some point we were on the verge of a strike. However, we managed to find one another, and this has been crucial in resolving this round of wage talks. We want to thank the negotiating team led by the regional secretary comrade Kabelo Ramokhathali for their hard work.”