South African autoworkers strike over wages at BAIC plant

Workers were originally employed at Skill Level 1 of the National Bargaining Forum, the industry's collective bargaining platform, entitling them to R121 (US$7.30) an hour. In June 2025, BAIC laid off workers, citing a plant refurbishment. When they returned two months later, their hourly rate had been cut to R48 (US$2.90). Specialized artisans like spray painters now earn R84 (US$5.07) an hour and CO2 welders R48 (US$2.90), against a sectoral entry rate of R163.24 (US$9.85) and a qualified rate of R180.53 (US$10.90). NUMSA is demanding both rates be restored, alongside back-pay and allowances for workers who have acted as team leaders, in some cases for over six months, without formal appointment.

BAIC must respect industry wage agreements

Underlying the wage dispute are NUMSA's demands that BAIC align with the conditions observed by every other original equipment manufacturer (OEM) operating in South Africa. The union wants weekly pay moved from Friday to Wednesday, so that workers are not left stranded over long weekends and public holidays, contract workers employed for more than three months be made permanent, and graduates of the government's Youth Employment Service learnership scheme be absorbed into permanent jobs once their training ends.

"BAIC must fall in line with every other OEM. No exceptions, no shortcuts on benefits," said Mziyanda Twani, NUMSA's Eastern Cape regional secretary.

Paule-France Ndessomin, IndustriALL's regional secretary for Sub-Saharan Africa, added: "Industry bargaining is a pillar of labour relations in South Africa. BAIC must not knock it down through low wages."

Flagship fails to meet expectations

In 2016, the Beijing-based group struck a joint venture with the state-owned Industrial Development Corporation (IDC), taking a 65 per cent stake against the IDC's 35 per cent, to build an R12.6 billion (US$764 million) assembly plant in the Coega zone outside Gqeberha. The plant was meant to produce up to 100,000 vehicles a year, create 10,000 jobs, and anchor BAIC's ambitions across Sub-Saharan Africa, the Middle East and beyond.

Sales volumes have remained low. BAIC has since pinned its hopes on the X55 SUV and, more recently, the B30, while signalling plans to expand the Coega facility despite American tariff pressures on global trade.

Chinese cars, led by Great Wall Motors' Haval brand and Chery, have become a fixture on South African roads. In the first quarter of 2026, combined sales of Chinese-built vehicles were 16094, with the brands now ranking among the country's top three best-sellers. Their advance has been built on competitive pricing and improving specification at a time when high interest rates and weak real-wage growth have squeezed South African consumers' budgets.