South African employers are warning of the consequences of an ‘indefinite strike’ as the country’s huge metalworking walk-out now enters its third week, slashing automotive component availability.
The National Union of Metalworkers of South Africa (NUMSA) has called out its 220,000 members in a pay dispute, which has seen it demand a minimum wage increase of 10%, with the massive labour unrest affecting auto suppliers.
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“It has a knock-on effect – everybody forecast probably a two-week strike – what is of concern is it is going into week three,” Motor Industry Bargaining Council (MIBCO) convener component industry spokesman, Mark Roberts, told just-auto from South Africa.
“As a result there is a shortage of material. Some of the motor manufacturing plants are now working on a reduced pattern – there will be a knock-on effect on T1 suppliers.”
The latest industrial unrest follows last September’s walkout that saw a three-week strike finally result in NUMSA and the Automotive Manufacturers Employers Association (AMEO), conclude an agreement to restart production, with the damaging dispute costing the South African sector, US$58m a day.
No-one at NUMSA was immediately available for comment, but the union did send just-auto a statement, which noted: “Our members are very clear if employers want a three year agreement, they must meet workers’ demand [s] of double digit increases, which should be on an ascending scale.
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By GlobalData“Failing which, our members shall settle for nothing less than 10% for the first year, 10% for the second year and 10% for the third year.
“We want to inform our membership and the broader public as a union, we are ready to end the current strike with a one year agreement and a 10% wage increase.”
“In Numsa we always approach strikes very seriously precisely because we know the hardships of our members are doubly multiplied during strikes as they suffer the double effects of inferior colonial wages and then, simultaneously during strikes, they lose even these inferior earnings for the duration of the strike.”
NUMSA added employers had offered “only” 10% for the first year, 9.5% in year two and 9% after that, a series of improvements rejected by its membership.
The country’s Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said it was “deeply disappointed” by NUMSA’s rejection of its “very good” final offer.
“We have now done everything we could possibly have done to end the strike and we deeply regret the fact all our efforts have been in vain,” said SEIFSA CEO, Kaizer Nyatsumba.
“It is very unfortunate that a strike which has already caused much damage to our economy appears set to continue indefinitely.”
Among automakers affected are General Motors and BMW.
