12 August, 2010IMF affiliate NUMSA stages indefinite industrial action in the automobile industry of South Africa. Strike affects seven automotive companies.
SOUTH AFRICA: On August 11, IMF affiliate National Union of Metalworkers of South Africa (NUMSA) started an indefinite national strike. Around 31,000 autoworkers are participating in the strike affecting all vehicle producing companies including Ford, General Motors, Toyota, Volkswagen, BMW, Nissan and Mercedes Benz.
The union's demands include:
- 15 per cent wage increase against only 7 per cent hike proposed by the Automobile Manufacturers Employers' Organization (AMEO) representing auto manufacturers of South Africa;
- Same benefits for short term and constant contract workers with permanent employment after three months of work;
- Scrapping the use of labour brokers;
- Increase of up to 100 per cent for lay-off payments;
- Reduced working hours down to eight hours a day from Monday to Friday; and
- Six months paid maternity leave.
NUMSA called the national strike after more than two months of negotiations for a new collective agreement with automobile manufacturers. The last agreement, signed in 2007 and expired on 30 June 2010, did not foresee the crisis and subsequent high inflation, which is why the union believes their demands are modest and mainly aimed at "recovering losses suffered as a result of crises", reads NUMSA's statement issued on August 6, 2010.
"The automotive industry in general is the leading manufacturing sector in the economy of our country with the largest Gross Domestic Product (GDP) contribution. This industry is the strategic pillar of our economy. It's economic and employment contribution goes far beyond just new automotive vehicle production - small, medium, heavy and extra-heavy commercial vehicles, and passenger vehicles," states NUMSA.
"The multiplier effects of the automotive manufacturing industry include vehicle and related parts retail, finance and insurance, service and repair workshops, fuel and oil retail, paint, components, tyres, glass, leather, textile, rubber, plastic and steel production, and transport generally," believes NUMSA.
NUMSA has also been negotiating wages and conditions in the tyre industry, however the union's decision is not to call for a strike, potentially involving another 6,000 workers.