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2 May, 2001The South African metalworkers' union has negotiated a severance package for laid off workers which includes a 4 million rand social plan.
SOUTH AFRICA: A deal struck between Goodyear and its workers, represented by the National Union of Metalworkers of South Africa, could set a precedent. The agreement includes special provisions under a "Social Plan" and has turned what threatened to be a confrontation with serious international implications into a settlement that Numsa says is a labour victory against the negative aspects of globalisation.
Goodyear and the union first entered into negotiations last November after the tire company, which had announced a 10 per cent reduction in its workforce worldwide, said it would cut 400 jobs at its Port Elizabeth tire plant as part of its global restructuring. Numsa reacted by calling a strike and threatening to escalate the affair by seeking support from the international trade union movement.
Now, after months of intensive negotiations, Numsa members are picking up a severance package which includes a 4 million rand (US$ 499,000) social plan to benefit the local economy by funding retraining for workers and getting them into Black empowerment projects and their own small business ventures.
For the upcoming 2001 collective bargaining negotiations with South African motor industry employers, Numsa is being encouraged by the government to get commitments from employers that the big companies will buy from smaller companies that are established by retrenched workers under programmes such as that agreed with Goodyear. Automotive worker bargaining strategies in South Africa are also increasingly focusing on training and retraining, particularly improving computer skills.
Source: just-auto.com
Goodyear and the union first entered into negotiations last November after the tire company, which had announced a 10 per cent reduction in its workforce worldwide, said it would cut 400 jobs at its Port Elizabeth tire plant as part of its global restructuring. Numsa reacted by calling a strike and threatening to escalate the affair by seeking support from the international trade union movement.
Now, after months of intensive negotiations, Numsa members are picking up a severance package which includes a 4 million rand (US$ 499,000) social plan to benefit the local economy by funding retraining for workers and getting them into Black empowerment projects and their own small business ventures.
For the upcoming 2001 collective bargaining negotiations with South African motor industry employers, Numsa is being encouraged by the government to get commitments from employers that the big companies will buy from smaller companies that are established by retrenched workers under programmes such as that agreed with Goodyear. Automotive worker bargaining strategies in South Africa are also increasingly focusing on training and retraining, particularly improving computer skills.
Source: just-auto.com