South Africa’s largest labor union has reached a landmark wage deal with employers in the motor industry, securing above-inflation increases for 90,000 workers, according to Bloomberg.

The agreement, signed by the National Union of Metalworkers of South Africa (Numsa), runs for three years from September 1, with the top increase set at 6%. The union had initially demanded a 10% raise.

The deal also introduces primary healthcare benefits for garage employees, marking a first for the sector. Numsa highlighted that the agreement “lays the foundation for the lowest paid workers to access quality private healthcare,” signaling a shift toward broader employee welfare beyond wages.

The move comes amid a backdrop of rising consumer prices. South Africa’s inflation rate climbed 3.5% in July year-on-year, with central bank Governor Lesetja Kganyago warning earlier this month that inflation is expected to rise further before stabilizing around 3% in the medium term.

The motor industry employs roughly 300,000 people under the Motor Industries Bargaining Council, encompassing a wide range of businesses from component manufacturers and car dealerships to fuel stations, tire shops, and panel-beating workshops. Employer groups involved in the negotiations include the Fuel Retailers Association and the Retail Motor Industry Organization, according to Numsa.