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RMI announces conclusion of the 2025 MIBCO wage and substantive negotiations

Aug 25, 2025 Retail Motor Industry Organisation (RMI), Jeffrey Molefe, Motor Industry Bargaining Council (MIBCO).


RMI announces conclusion of the 2025 MIBCO wage and substantive negotiations

 

The Retail Motor Industry Organisation (RMI), the largest employer party in the motor industry comprising more than 20 000 employers and 300 000 employees across numerous divergent sub-sectors, is pleased to announce the successful conclusion of the 2025 wage and substantive negotiations under the Motor Industry Bargaining Council (MIBCO).

 

Jeffrey Molefe, RMI Labour Director said wage negotiations officially commenced on 10 April 2025 and, after extensive and constructive engagements with organised labour, the parties have reached a three-year settlement agreement which brings certainty and stability to the Industry.

 

The settlement agreement provides for the following wage and salary increases:

•   Component Manufacturing Sector:

Year one – 6%, Year two – 5% and Year three – 5% (on actual wages)

 

•   Rest of the Industry (Excluding the Fuel Dealers Sector):

Year one – 5%, Year two – 5% and Year three – 5% (on minimum wages)

 

•   Apprentices and Learners:

Year one: 3%, Year two: 3% and Year three: 3% (on minimum wages).

 

•   Fuel Retailers Sector: Forecourt Attendants

Year 1 – 6%,   Year 2 – 5%,   Year 3 – 4%

(All include 1% medical insurance allowance)

 

Cashiers and Chars

Year 1 – 6%,  Year 2 – 4%,  Year 3 – 4%

(All include 1% medical insurance allowance)

 

The RMI formally signed the three-year agreement with the trade unions, MISA (Motor Industry Staff Association) and NUMSA (National Union of Metalworkers of South Africa) on Saturday, 23 August 2025. The 2025 Collective Bargaining Negotiations have been widely recognised as the most successful to date, since the advent of democracy in South Africa, having been concluded without a single dispute being declared by any of the trade unions.

 

The signed Settlement Agreement will be formally adopted at a Special MIBCO Council meeting in September 2025, and will thereafter be submitted to the Minister of Employment and Labour for publication in the Government Gazette, with extension to non-parties. Upon publication in the Government Gazette, the wage increases shall become legally binding and compulsory for all employers and employees falling within the registered scope of MIBCO. The effective implementation date will be determined by the Minister at the time of publication.

 

“The RMI is satisfied with the outcome of the MIBCO 2025 collective bargaining process, as it reflects the mandate of our members while balancing the realities and sustainability of businesses across the motor industry,” concludes Molefe.

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