South Africa Automakers and Union Reach Pay Pact to Avoid Strike

A group representing South African automakers including units of Ford Motor Co. and BMW AG reached a wage pact with the top industry union following nine rounds of talks.

The Automobile Manufacturers Employers Organisation and the National Union of Metalworkers of South Africa agreed to a 7% across-the-board wage increase for the first year of the deal backdated to July 1, and 5.5% in each of the second and third years, AMEO said in a statement Friday. Consumer prices rose an annual 3.4% in September.

The deal also includes a 12,500-rand ($728) one-off taxable gratuity for all eligible employees, increased ...