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23 January, 2001South African conciliation commission rules that VW South Africa must reemploy 1,300 workers by February 5.
SOUTH AFRICA: The Commission for Conciliation, Mediation and Arbitration ruled on January 23, 2001, in an historic application of the labour law, that Volkswagen South Africa must reemploy the 1,300 workers who were dismissed from the company's Uitenhage plant in February of last year. Although the Commission had found the dismissal of the workers, who had organised what a Labour Court Order declared as illegal strike action in July 1999, to be fair, it ruled that the procedures followed by the company were unfair.
Legally, VW will not be able to appeal the ruling, as it was reached through arbitration, but the company can ask to have it reviewed. However, even if VW Germany did commit itself to its SA subsidiary during the strike action, it has a 2 billion rand (US$254 million) annual export contract for its A4 Golfs to Europe, so the company may wish to avoid any further disturbance at the Uitenhage plant.
The Commission's decision on January 23, stating that all 1,300 workers must be reemployed by February 5, was welcomed by the National Union of Metalworkers of South Africa, which formerly represented the workers.
Legally, VW will not be able to appeal the ruling, as it was reached through arbitration, but the company can ask to have it reviewed. However, even if VW Germany did commit itself to its SA subsidiary during the strike action, it has a 2 billion rand (US$254 million) annual export contract for its A4 Golfs to Europe, so the company may wish to avoid any further disturbance at the Uitenhage plant.
The Commission's decision on January 23, stating that all 1,300 workers must be reemployed by February 5, was welcomed by the National Union of Metalworkers of South Africa, which formerly represented the workers.