Design & Manufacturing News South Africa

Car maker calls for consensus

Volkswagen South Africa (VWSA) has sounded alarm bells as the ongoing automotive labour action in the Eastern Cape looks set to gain momentum and disrupt its production.

National Union of Metalworkers of South Africa (Numsa) regional secretary Irvin Jim on Tuesday said that the union had served VWSA with a notice for a secondary strike should an agreement between Schnellecke SA and Numsa not be reached within seven days of the notice.

VWSA has urged Schnellecke SA and its employees to reach consensus amid fears that a solidarity strike by VWSA employees would hinder the auto manufacturer's ability to fulfil its export contract obligations.

“Schnellecke and its employees need to reach an agreement. A protracted stand-off could negatively impact current and future export contracts of VWSA, thereby threatening jobs at the Volkswagen plant in Uitenhage,” said VWSA general manager of communications Bill Stephens.

“This intention is within the labour law process, which must run its course over the next several days. VWSA does not believe Numsa's intention of a solidarity strike at VWSA is in anybody's interest and trusts this can be avoided.”

A strike by VW employees could hamper exports, which have been the key driver of sales after the domestic market slump in recent months. The higher interest and inflation rates for food and fuel were earlier this year cited as some of the reasons for the near quarter drop in sales.

Earlier this year VWSA secured lucrative major contracts in the Asia-Pacific region and the United Kingdom and expects to achieve record export volumes reaching 40,000 units this year. Higher export volumes are expected to dilute the negative impact of slow domestic demand.

Nearly 3,000 VWSA Uitenhage plant workers are Numsa members. If they join the labour action of their Schnellecke SA peers, it will push the number of striking workers in the Eastern Cape's automotive industry up to nearly 4,600.

Workers at automotive glass manufacturer, Shatterprufe and VWSA logistics services suppliers Schnellecke SA, embarked on a strike on Monday over wages and better working conditions.

Stephens said on Monday the strike by Schnellecke SA had affected sections of operations, but production continued.

Numsa wants Schnellecke SA to compensate its members for the rising cost of living, resulting from rocketing fuel and food prices this year.

Shatterprufe workers demand an end to a hiring system which Numsa says fails to adhere to labour legislation and opens up opportunities for exploitation.

Stephens said the Shatterprufe strike had not had any impact, to date, on production at VWSA as the company had sufficient glass stock to enable production to continue over the next few days.

Source: Daily Dispatch

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