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20 September 2007
SA’s strike mentality is worrying – and it could crush the local motor manufacturing industry – Abacus South Africa’s “strike mentality” is a worrying phenomenon and is arguably going to have devastating affects on vital aspects such as the government meeting economic growth and employment targets, said Karen Geldenhuys, recently appointed managing director of IT recruitment company, Abacus Recruitment. Abacus Recruitment also has one of the country’s largest disabled recruitment divisions. Geldenhuys was reacting to the current strike in the automotive component manufacturing sector, which is threatening the loss of car manufacturer’s export contracts – and the possible loss of thousands of jobs. Workers at Volkswagen South Africa have already lost millions of Rands in wages. While the crippling strikes show no signs of being resolved, Volkswagen South Africa (VWSA) has warned that, if they continue, 1 500 jobs in the company’s plant could be lost – if export orders were lost due to production line standstills. But VWSA MD, David Powels – peaking to the press – added that about 3 500 employees in the service and component industries could be out of work. VWSA was forced to send 4 000employees home last week because of the strike, which has reportedly cost employees more than R5 million in lost wages, piling up at an estimated R1 million per day. “If we, as a country, want to stay internationally completive, these kinds of rolling strikes are certainly not going to assist us. Our labour is becoming excessively expensive. Somehow, industry needs to inculcate in employees that striking for an additional one, two or three percent wage increase is totally unproductive – and exceedingly dangerous. Everyone loses out. Perhaps large companies should look at holding regular workshops. I don’t think there is enough interaction on this topic from a managerial-to-worker point of view,” she said. Vehicle manufacturing plants will be forced to dramatically scale down operations if export business is lost due to strikes. The entire vehicle and component manufacturing industry in South Africa could collapse. |