GQEBERHA, Eastern Cape — Employees at BAIC South Africa have initiated a strike in Gqeberha following a prolonged wage dispute, demanding the automaker align with the national industry pay standards to match other local vehicle manufacturers.
The 11 billion rand facility is a joint venture between the Chinese motor manufacturer and the South African Industrial Development Corporation (IDC). Following initial construction delays, manufacturing operations officially commenced around 2022. However, it was at this operational milestone that tensions between the workforce and company management first became visible, eventually culminating in the current industrial action.
At the center of the conflict is a significant pay disparity. According to Mziyanda Twani, the regional secretary for the National Union of Metalworkers of South Africa (NUMSA), the company currently pays workers between R40 and R48 per hour, depending on their operational category. In contrast, the union insists that the industry standard for a Level 1 worker is R121 per hour. Twani stated that the company failed to present a counteroffer to avert the strike.
Negotiations between the union and the employer have been ongoing since 2022. The most recent bargaining session concluded late Friday night, between 10:00 p.m. and 11:00 p.m., after management repeatedly took caucuses without presenting a substantive offer. Although management committed to providing a formal response by noon the following day, the union reports that no such offer was made. Consequently, efforts to resolve the deadlock through the Commission for Conciliation, Mediation and Arbitration (CCMA) have ultimately failed.
Beyond immediate wage increases, NUMSA is demanding that BAIC join the National Bargaining Forum. Currently, seven other Original Equipment Manufacturers (OEMs) in the country are part of this forum, which regulates pay and working conditions across the automotive sector.
Twani emphasized that BAIC’s refusal to join the forum constitutes uncompetitive conduct, particularly because their workforce comprises highly skilled and experienced employees. Many of these workers were recruited from established local assemblers in the region, including Volkswagen, Mercedes-Benz, and Isuzu, and already possess the required competencies to deliver high-quality products.
The Eastern Cape, particularly the Nelson Mandela Bay municipality, serves as a major hub for the country’s automotive manufacturing industry. Union leaders and industry observers are hoping for an amicable resolution, mindful of the broader economic climate where original equipment manufacturers have previously relocated their operations due to unresolved labor unrest.
