Car Enthusiasts
Would you like to react to this message? Create an account in a few clicks or log in to continue.

S. African Strike May Shut Toyota, Mercedes and BMW

Go down

S. African Strike May Shut Toyota, Mercedes and BMW Empty S. African Strike May Shut Toyota, Mercedes and BMW

Post  orangeranger Wed Sep 15, 2010 12:14 am

Sept. 2 (Bloomberg) -- A two-day-old strike by workers at South African auto-parts companies may force plants owned by Toyota Motor Corp., Bayerische Motoren Werke AG and Mercedes- Benz AG to close, the Retail Motor Industry Organisation said.

If the labor action continues until the middle of next week the carmakers may have to cut operations as they are starved of parts, RMI Chief Executive Officer Jeff Osborne said in an interview from Johannesburg today. Employers are currently meeting National Union of Metalworkers of South Africa representatives to discuss a new wage deal.

“If we’re still in the same place mid next week, some difficult decisions will have to be made,” Osborne said.

Volkswagen AG yesterday said it stopped operations for the second time in a month because of strike action. Carmakers shut their plants for eight days in August after workers went on strike demanding a 15 percent wage increase, before agreeing to a 10 percent raise. The labor action led to a production loss of 17,000 cars.

South Africa’s car and auto parts industry accounts for about 6 percent of gross domestic product and is the country’s biggest manufacturing exporter.

Car-component and gas station workers are asking for a 15 percent pay increase, with employers offering 6.6 percent, almost double the current inflation rate of 3.7 percent. Workers also want the wage deal to be for one year rather than three and for the wage increase to be based on each individual’s salary and not on the lowest salary as is tradition, Osborne said.

About 50,000 gas stations were closed yesterday across Africa’s biggest economy, Numsa Deputy General Secretary Karl Cloete said today by phone from Johannesburg.

“We’re happy with yesterday’s turnout,” Cloete said. “The strike is continuing whilst we’re talking to employers and it will continue until such a time as the offer is improved.”

source: http://www.businessweek.com/news/2010-09-02/s-african-strike-may-shut-toyota-mercedes-and-bmw.html

orangeranger

Posts : 29
Join date : 2010-07-26

Back to top Go down

Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum