Production has so far continued uninterrupted at Volkswagen’s car plant at Uitenhage in South Africa despite strikes at two suppliers, though the company has warned a lengthy dispute would threaten export contracts.
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Volkswagen of South Africa told Dow Jones a strike at local logistics service provider Schnellecke stems from a wage dispute between the company and the National Union of Metal Workers of South Africa whose members are also striking at automotive glass manufacturer Shatterprufe, but this has to date had no impact on output as it has sufficient glass stock to enable production to continue over the next few days.
“Schnellecke and its employees need to reach an agreement,” Volkswagen said. “A protracted stand-off could negatively impact current and future VW of SA export contracts, thereby threatening jobs at the Volkswagen plant in Uitenhage.”
The automaker also said it was closely monitoring the strike at Shatterprufe, the news agency added.
