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Toyota and Ford both announced a halt at their production plants in Durban and Pretoria as the strike in the metals and engineering sector enters its third week.
Neasa’s Gerhard Papenfus says collective bargaining has led to rampant unionism in South Africa, which is unaffordable. Image: Neasa
This disruption to car manufacturing comes as the National Union of Metalworkers of South Africa (Numsa) said it was considering drawing in members from other sectors to intensify pressure on employers.
The union wants a 10% increase and a one-year agreement‚ or a three-year deal with a 10% wage hike for each successive year.
Ford and Toyota join other strike-hit car manufacturers such as BMW SA‚ which last week cut production by a third‚ and General Motors SA‚ whose plants have been closed since the start of the strike on 1 July.
Reuters reports that Mercedes Benz is concerned about its component supplies dropping to “critical” levels‚ but it is still making cars. It is the striking at component manufacturers that is harming car manufacturers.
Toyota spokeswoman Mary Willemse confirmed that the company was stopping production of its Corolla‚ Fortuner and Hilux models at its Durban plant.
Inventory from component suppliers running out
Ford spokesman Rella Bernades said production at its Pretoria plant had been disrupted. “We have temporarily halted production because we have run out of parts,” she said.
National Association of Automobile Manufacturers of South Africa (Naamsa) director Nico Vermeulen said most manufacturers had built up adequate inventory to withstand a two-week strike.
If it took longer than it had already‚ the situation would become more precarious.
Vermeulen said the strike would damage the country’s track record as a reliable‚ long-term supplier to global markets.
National Employers Association of SA (Neasa) Chief Executive Gerhard Papenfus criticised South Africa’s collective bargaining system‚ has led to rampant and uncontrolled unionism, which was “unaffordable”.
The National Union of Metalworkers of South Africa (Numsa) General Secretary Irvin Jim said he was aware that the strike would have a knock-on effect in other sectors of the economy.
“If this strike is not resolved quickly the rest of economy will be affected‚ which is why we are very flexible‚” Jim claimed.
“We have given employers flexible conditions‚ but they cannot blackmail workers by using the effect on the economy,” he said.
Other outstanding issues were Numsa’s demand for a ban on labour brokers and a housing allowance.
Numsa has softened its stance on labour brokers‚ with Jim conceding that a ban may be too rough on employers.
“Here we are saying to them‚ we are willing to give you a year to phase it out if you are under pressure,” he said.
Source: bizcommunity.com
