Job losses at vehicle firms to hit 1 600
Labour union Solidarity in talks with manufacturers
February 11, 2009
By Roy Cokayne
Six big automotive component manufacturers have given notice of their intentions to retrench a total of 498 people, bringing to nearly 1 600 the number of jobs that have been lost in the sector since December.
Jaco Kleynhans, a spokesperson for Solidarity, said yesterday that the trade union had received a section 189 notice of planned retrenchments from six big automotive component manufacturers, as well as notices from a few smaller firms also badly hit by the economic slowdown.
Hayes-Lemmerz, the car component manufacturer, plans to retrench 60 employees. Robor Stainless plans to slash 45 jobs. Guestro Automotive, part of Dorbyl Automotive Technologies, plans to cut 143 and IG Tooling 48.
Formex, a manufacturer of exhaust systems and fuel tanks, intends to retrench 114 employees, while axle producer Dana will slash Spicer 88 posts.
Trevor Volek, the managing director of Hayes-Lemmerz, said yesterday that the firm had retrenched 47 people in November and was looking to retrench up to 70 more people.
Volek said the firm was starting negotiations with the unions today on the planned retrenchments and did not know when they would be finalised.
He attributed the retrenchments to a "vanished" market and huge cutbacks globally that have been bigger than the slump in vehicle sales and were an indication of a reduction in the stock held by companies.
Volek said Hayes-Lemmerz employed 305 people and planned to reduce its workforce to 235, based on orders it "could see" for the next two years.
Kleynhans said the retrenchment numbers were not final, as Solidarity was in consultations with most of the firms and had already lowered the number of people affected. He said the union had received these retrenchment notices in December and last month.
Attempts to obtain comment from the National Union of Metalworkers of SA were unsuccessful.
Roger Pitot, executive director of the National Association of Components Manufacturers (Naacam), said yesterday that the organisation becomes aware of planned retrenchments only when its member companies informed them.
But about 10 of the 30 firms that responded to a recent survey indicated that they planned further retrenchments.
Naacam previously said that six other companies had closed because of the global slowdown in the industry, but declined to name them. The closures resulted in a loss of 1 100 jobs.
Kolbenco, South Africa's last remaining automotive piston manufacturer, is one of the firms that have closed. It plans to sell its plant and equipment to foreign buyers.
Component makers have appealed for bridging finance in a joint submission to the government, labour and business negotiating chamber, Nedlac, with the National Association of Automobile Manufacturers of SA and the National Automobile Dealers' Association.
Pitot said the indication from some of Naacam's member companies was that more of them would close and there would be a lot more retrenchments if the government did not respond quickly.
|
|
