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South Africa: Strike Claims VW As 'Latest Victim'
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Business Day (Johannesburg)
14 September 2007
Posted to the web 14 September 2007
Amy Musgrave
Johannesburg
A STRIKE by tens of thousands of National Union of Metalworkers of SA (Numsa) members in the motor component sector claimed Volkswagen SA as its second victim yesterday.
The company had to stop vehicle production at its Uitenhage plant in Eastern Cape and sent home most of its 4000 production employees as a result of the industrial action.
The wage strike -- which started on Wednesday -- has already taken a severe toll on the sector, with at least six of SA's major automotive manufacturers negatively affected.
The Automobile Manufacturers Employers' Organisation reported earlier in the week that one of Toyota's two production lines at the company's main plant in Durban had been stopped.
Numsa spokesman Mziwakhe Hlangani warned yesterday that if the strike continued into its second week, operations would come to a halt across the country.
Nico Vermeulen, executive director of the National Association of Automobile Manufacturers of SA, agreed with Hlangani, saying the industrial action had "serious implications" for the country. He warned that if it continued for much longer, SA's reputation as a reliable exporter of motor components and vehicles could be at risk.
"If the strike continues it will also have a negative implication on employment," he said.
Volkswagen SA human resources director Brian Smith said the strike at most of its supplier plants was already having a dramatic effect on the local car manufacturing industry.
He agreed with Vermeulen that the action threatened future jobs and export orders.
Numsa is demanding a 9% increase across the board for three years, or R509 a week. Employers are offering 7%- 9%.
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Wage negotiations are set to continue today.
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