The Commission for Conciliation, Mediation and Arbitration is set to meet the Automobile Manufacturers’ Employers’ Organisation and the Metalworkers’ Union on Monday in a bid to end the motor industry strike.
The Commission for Conciliation, Mediation and Arbitration is set to meet the Automobile Manufacturers’ Employers’ Organisation and the Metalworkers’ Union on Monday in a bid to end the motor industry strike.
The strike enters its third week with the industry having already lost millions of rands. The union is demanding a 10 per cent increase, while the employers have offered 7,5 per cent. Union spokesman Dumisa Ntuli said the parties would meet “with the aim to narrow down issues”.
The parties were scheduled to meet on Sunday, but CCMA director Thandi Orleyn said it was postponed because all the sides had not arrived in Johannesburg in time. There will be no intervention from government in the wage negotiations. Trade and Industry Minister Alec Erwin said the disputes were between unions and management and did not involve the government. He said as long as labour laws were followed the issue was between the various parties.
Meanwhile, Toyota has said the strike could put its R1,2 billion deal to export Corollas to Australia at risk. Johan van Zyl, director of vehicle marketing at Toyota South Africa, said the deal is conditional upon stability in the local industry, cost-effectiveness and efficiency.
Van Zyl warned about the effects of the strike. “Toyota has 41 plants around the world and for us to get such an export deal, we have to show we will deliver on time and at competitive input costs. If we can’t the contract will just go to another plant in another country.
“Large corporations are not going to invest here for the feel-good factor.”
The strike would also affect the local market. Van Zyl pointed out that even if the manufacturer made up lost production, they would still have lower inventory levels during the annual shutdown period in December.
DaimlerChrysler South Africa said last week that a prolonged strike could result in the local company losing its multi-billion rand deal to produce right-hand drive versions of the Mercedes Benz C-Class to a plant in Germany. The company said on Friday it was still deciding on further action and might transfer production of several thousand units back to Germany.
In the tyre and rubber industry, the Metalworkers’ Union will decide on Monday whether to issue employers with a strike notice.
Ntuli said the union would consider the negotiations that took place at the end of last week before deciding on further action. Numsa is demanding a 10 per cent increase, the Metal Workers’ Union-Solidarity wants 8,5 per cent, while the employers are offering seven per cent.
Ntuli said if the employers did not increase their wage offer they would be forced to strike.
Numsa obtained a certificate of non-resolution following the failure to reach an agreement on the wage increases. The union is now entitled to issue notice of industrial action.
MWU-Solidarity said it would wait for more information from the employers about its revised demands before deciding whether to strike. All the parties are expected to meet on Monday.