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Devastating news from GMSA for Port Elizabeth

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Dear MyPE

GMSA personnel were told today that General Motors SA is closing with immediate effect. All plants closed. All workers redundant and not returning to work. Unions will mediate with GM up to 24 May 2017. Thereafter go to CCMA.

Regards

Port Elizabethan

UPDATE – 19 May 2017:

Editor: This letter sent via WhatsApp to MyPE by an employee of GMSA with whom we have a trustworthy relationship on another matter. Obviously said employee wishes to remain anonymous and may have heard incorrectly leading to an emotional response.

MyPE has posed a set of fourteen (14) questions to GMSA with regards to the matter and the way forward – those questions and replies will be posted here when received. According to a letter given to employees on 18 May 2017; “Normal production operations will resume on Wednesday, the 24th of May 2017.”

GMSA have responded to this letter saying:

Dear Alan,

We have seen your article, ‘Devastating news from GMSA for Port Elizabeth,’ that you posted on mype.co.za earlier today and there are factual inaccuracies that we would like to correct.

GMSA personnel were told today that General Motors SA is closing with immediate effect – this was not expressed to employees. The business operations will recommence on 24/05/2017 as this allows for employees to consult with the business over the next few days.

All plants closed. This is incorrect – please see above response.

All workers redundant and not returning to work – Please see above and as announced to employees, the consultation process will begin over the following days and weeks and during this process all employees will continue normal working duties.

Unions will mediate with GM up to 24 May 2017. Thereafter go to CCMA – The consultation process only begins on the 24/05/2017 and will last for a minimum of 60 days.

GMSA Q&A – 19 May 2017:

Q: Is the entire business closed from 18 to 23 May 2017?
A: The business won’t be closed, however, as discussed with employees yesterday, the next few days will be used to commence the consultative process which will last for a minimum of 60 days.

Q: Are vehicles being manufactured in the plants during this closed period?
A: There will be no manufacturing until 24 May 2017.

Q: When workers return on 24 May 2017 will the plant return to full production until Isuzu takes over?
A: That is the intention.

Q: With regards to ‘redundant workers’ does GMSA have an agreement with Isuzu that all workers will transfer to the new entity owned by Isuzu?
A: Certain employees will be transferred to Isuzu but this is subject to the consultation process between GM and their employees.

Q: If not all workers then which will be transferred and how many?
A: The consultation process with employees and their representative unions is currently being held and will last over a minimum of 60 days. Only at the end of this period will GM have a clear view on exactly how many employees will be transferred to Isuzu.

Q: How many workers have taken the voluntary severance package since date of inception?
A: Since announcement, no workers have taken the voluntary severance package.

Q: How many workers did GMSA have on 19 May 2017?
A: 1 500

Q: How many workers from the 19 May headcount will be transferred to the new entity when Isuzu takes over?
A: The consultation process with employees and their representative unions will be held over a minimum of 60 days and only at the end of this period will GM have a clear view on exactly how many employees will be transferred to Isuzu.

Q: During Isuzu’s due diligence how many workers did Isuzu indicate that they will require from the present workforce?
A: Certain employees will be transferred to Isuzu but this is subject to the consultation process between GM and their employees.

Q: Your letter to employees states “We will immediately begin the consultation process with unions and engage with employees on transition arrangements and support.” Does this mean that the unions were not consulted prior to the announcement?
A: While GM and Isuzu have been in ongoing discussions the final decision on the way forward was only taken recently. GM made the announcement as soon as was possible to do so and with a firm way forward GM can now begin the consultation process.

Q: Various reasons are put forward as to why this decision was made – one of which is to do with poor sales performance – would it have been feasible to be brutally honest with the workforce and unions and ask for their assistance to solve the poor sales performance? Or take voluntary pay freezes until the turn around occurred?
A: This decision was based on GM’s global business priorities. Because there have been significant changes to the global industry over the last few years, the GM global strategy has evolved with these changes and GM believes there are opportunities where GM can achieve greater return on investment.

Q: GMSA’s letter to employees says; “Employees who are not required to report for duty [on Wednesday 24 May] will receive full payment for the non-production days.” How many employees are affected and in which areas of production?
A: All employees are affected by this announcement however, all employees will receive full payment for non-production days.

Q: Could one then draw the inference that the above affected employees could be the first ones to become redundant during the consultation process?
A: The consultation process with employees and their representative unions has commenced and will be held over a minimum of 60 days. Only at the end of this period will we have a clear view on exactly how many employees are affected and which.

Editor: On Friday 19 May GMSA employees were handed a letter – see: 589 GMSA Employees face retrenchment – in which 425 Hourly workers, 145 Salaried workers and 19 Members of Management face retrenchment, leaving 944 employees that may transfer to Isuzu.

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Port Elizabethan

This author is a 'catch-all' for occasional articles and letters written to MyPE. The Author of each article can be found in the signature at the bottom of each individual article.