Workers ended up their strike after agreeing on the pay deal

Finally the South african car workers ended up a month long strike by agreed on the new pay deal. The strike has highly affected the industry especially the exports. NUMSA accepted the deal as 10% hike this year and 8% hike in the next two years.

Because of this strike action, last week BMW declared to stop all its future plans in South Africa. In this deal the pay at small to medium sized car parts firm will only rise wages by 9% in the first year followed by 8% in the subsequent two years.

Irvin Jim, the general secretary of the NUMSA told reporters that “The strike was very hard for us.”

The car component strikes greatly affected the production at BMW, Ford, Nissan and General Motors. The loss is estimated around $2bn.

The managing director at BMW Bodo Donauer said that “the company was unable to produce 11,000 cars due to the ongoing strikes. But more serious scenario than the production of these 11,000 cars is the damage due to the strikes.”

On Sunday, Mr. jim said that our decision to stop the future investment was a kind of blackmail which would be rejected with its earnings.