STRIKE ACTION HALTS PRODUCTION AT FORD SA
Nicola Mawson
The National Union of Metalworkers of South Africa (Numsa) has brought production at Ford South Africa, which makes more than 700 vehicles a day, to a halt.
The trade union downed tools yesterday because Ford has refused to include workers in profit sharing. Numsa’s national spokesperson Phakamile Hlubi-Majola told Business Report yesterday that the shop steward had confirmed that all production had been halted.
Asked about the industrial action yesterday morning, Ford said it had nothing to add to its previous statement, which included a veiled threat that it may choose another manufacturing destination.
On Wednesday, Ford SA’s spokesperson Minesh Bhagaloo said that consistency in production was vital when it makes investments, and the union action that affects manufacturing also adversely affects South Africa’s global competitiveness.
The union’s Secretary General, Irvin Jim, has argued that Ford is refusing to share its profits with workers. “Our members are the creators of wealth and Ford has benefited hugely from the sweat and labour of the workers.”
On Wednesday, Jim stated that “Ford management pretends not to understand the demand and they keep claiming it is ‘impermissible’ and they claim that workers have no right to demand bonuses. We reject this with the contempt it deserves.”
Citing Macrotrends, Jim said Ford’s gross profit was $25.137 billion (R467.2bn) in the year to March 31, 2024 – a 0.45% year-on-year increase. Ford SA dates its time in South Africa back to 1923, when it started assembling Model T cars in a disused wool shed in then Port Elizabeth (Gqeberha).
The vehicle maker directly employs about 5 500 people in SA, and indirectly supports around 60 000 jobs within the value chain as of 2022. NUMSA represents 3 000 of these workers and is the only union represented at the vehicle maker.
The strike is set to continue after the Labour Court ruled against Ford’s bid to interdict the union.
Ford has urged all workers who are not on strike to stay at home.
BUSINESS REPORT
2024-07-05T06:43:58Z dg43tfdfdgfd