South Africa’s automotive employers body is warning of the impact on future export potential as more than 31,000 assembly line workers strike indefinitely next Monday (19 August), paralysing large swathes of the industry.
The walkout revolves around a wage dispute that has pitted the powerful National Union of Metalworkers of South Africa (NUMSA) against seven OEMs, whose body, the National Association of Automobile Manufacturers of South Africa (NAAMSA) is warning of future confidence in the country’s export potential.
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OEMs affected are Mercedes-Benz, Volkswagen, BMW, Nissan, Toyota, Ford and General Motors, with NAAMSA estimating lost production to be in the order of 3,300 vehicles per day.
“Clearly it is unfortunate,”NAAMSA director, Nico Vermeulen, told just-auto from South Africa. “There is deadlock in negotiations – the unions are demanding 14.5% and the employers have tabled 8% for the first year.
“That is in relation to the inflation rate of 5.6%. The major concern is this undermines the status of South Africa as a reliable supplier of vehicles to global customers. It has implications for industrial long-term competitiveness.”
Negotiations between both parties are currently stalled, although NUMSA has held the door open for talks “twenty-four” hours per day should the chance occur.
“When you go on strike…you know you will not get paid but it is a mechanism of last resort,” NUMSA automotive chief negotiator, Alex Mashilo, told just-auto from South Africa.
“The strike is starting on Monday and it will continue [until] there is an agreement. It is an indefinite strike. We are available for meetings at any time – we make ourselves available twenty-four hours.”
News of next week’s industrial action follows NUMSA’s 22% pay demand in May this year, with the country also seeing some 6,000 Mercedes-Benz staff down tools although the two events were unconnected.
The indefinite strike on Monday forms part of the backdrop to intensely difficult industrial relations in South Africa that in some cases, resulted in huge violence at the country’s mines in 2012 that left scores dead.
A similar nationwide stoppage also occurred in 2010, when a two-week strike involving 70,000 workers severely affected South Africa’s auto sector.
