The National Union of Metalworkers of South Africa (NUMSA) has criticised the plan by Mercedes-Benz South Africa (MBSA) to lay off 700 employees at its East London car factory.
Last week, the he German car manufacture announced it will reduce production from three daily shifts to two due to falling demand for its C-Class sedan across the world – which is built at the plant for the local buyers and export.
In a statement, MBSA said it had commenced deliberations with workers and unions in line with the Labour Relations Act.
Within a span of 60 days, the process will see discussions on reduction pf workforce through early severance, early retirement, and natural attrition.
The company would also consider suppliers’ roles on their business operations, Joint-CEO Andreas Brand told the press.
For a decade, the manufacturer operated three shifts daily, Monday to Friday. The C-Class, which includes hybrid-electric and high-powered AMG variants, was introduced in 2021 after a R13bn investment from Germany.
At least 9 out of 10 from the East London plant’s output was for export, mainly to Europe, Asia and North America, and the declining demand in these markets was impacting South Africa.
“We depend on our export volumes. This is a global issue,” said Brand.
In response, NUMSA said it was appalled by the section 189 notice.
“We are deeply concerned about workers and their families who will be affected if the company goes through with the retrenchments,” said NUMSA general secretary Irvin Jim.
“The Eastern Cape, where most MBSA workers are based, will be hardest hit because of high levels of poverty and unemployment. It is unlikely workers will find alternative employment if MBSA implements the proposed retrenchments”.
NUMSA said MBSA was contemplating retrenching 702 employees and the job categories which are likely to be affected are artisans (67), team managers (23) and 612 hourly employees. MBSA employs 3,396 employees in total.
Jim said: “We will wait for the Commission for Conciliation, Mediation and Arbitration to issue dates for the first meeting so we can consult with the employer. Numsa will do everything possible to provide alternatives, with the hope we can prevent job losses.”
