The President of the National Association of Automobile Manufacturers of South Africa (NAAMSA), Dr Johan van Zyl, today warned that prolonged industrial action which had paralysed the operations at the seven major vehicle manufacturing plants in South Africa (BMW South Africa, Ford Motor Company SA, General Motors South Africa, Mercedes-Benz South Africa, Nissan South Africa, Toyota SA Motors and Volkswagen Group SA) had entered a critical phase and had also had a negative cascade effect throughout the automotive manufacturing and supply chain in South Africa.
The industrial action is about to enter the third week and will have major adverse consequences for South Africa. The vehicle and automotive component manufacturing industry, including exports, accounted for approximately 30% of South Africa’s manufacturing output and about 4,5% of the country’s gross domestic product, whilst the broader South African motor industry, including retail/distribution/servicing and repairs, accounted for 7,5% of South Africa’s GDP.
Dr van Zyl said that the strike will result in lower economic growth, lower domestic and export production and sales, reduced industry profitability, substantial loss of income to workers, loss of revenue to the fiscus, lower foreign direct investment into South Africa and ultimately less employment. Continuing, Dr van Zyl said “there are no winners in a strike situation in the vehicle manufacturing industry which provides stable employment with, by South African standards, attractive and high quality employment conditions, remuneration levels and benefits”.
van Zyl continued to say that the double digit offer by employers is reasonable and highly competitive compared to settlements in other sectors and in relation to inflation. The industry is not just offering a very high across the board (ATB) increase but also a transport allowance, increase in shift allowance and short time allowance. The workers will also receive a cash allowance coupled to an additional across the board increase to equalise wages in the industry. “This offer from the Auto Motor Industry amounts to a total increase of more than 30% over the three year period and is the best ever offered in the history of collective bargaining in the industry”.
We urge NUMSA to continue with their effort to bring the strike to an end and workers to accept our settlement offer. We are looking forward to a speedy return by all of our employees to work.
Alan Straton
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