General Motors’ South African plant still closed as strike continues

General Motors’ South African plant still closed as strike continues
 

Workers at components factories supplying General Motors’ South African plant remained on strike on Monday, but the vehicle maker said it had sufficient inventory for both domestic and export customers for the medium term.

More than 200,000 members of the National Union of Metalworkers of South Africa (Numsa) stopped work last week demanding salary hikes of up to 15%, in a strike that will further hurt the ailing economy.

Numsa has rejected an updated 10% offer from employers’ group the Steel and Engineering Industry Federation of Southern Africa.

“The strike in the metal and engineering sector has impacted upon supply of components to our production line, resulting in our line not being operational since July 3,” GM spokeswoman Denise van Huyssteen said.

“To date we have lost three days of production.”

Mercedes Benz said there had been no effect so far at its local operations, while Toyota said it was still at “full production”.

The union wants any wage hike agreement to apply for a year only but companies want a three-year deal.

Business Day Live/Reuters