South African Automobile Strike Enters Second Day, costing Manufacturers Rand 110 Million Daily

Strategic Insights -

A devastating strike by 25,000 workers from the National Union of Metalworkers of South Africa (NUMSA) has brought automobile manufacturers in South Africa to a standstill, with lost production costing the manufacturers Rand 110 million ($30 million) a day. The strike, which began on Monday, has affected all seven automobile manufacturers in the country, including Volkswagen, Toyota, BMW, and Mercedes-Benz. NUMSA is demanding a 12 percent pay increase, rectification of wage anomalies, and better conditions of employment, including job security against retrenchment and paid adult education.

Key Takeaways:

  • The strike by 25,000 workers from NUMSA has cost automobile manufacturers Rand 110 million ($30 million) a day in lost production.
  • The strike has affected all seven automobile manufacturers in South Africa, including Volkswagen, Toyota, BMW, and Mercedes-Benz.
  • The strike is likely to affect related industries, including component manufacturers, with about 80,000 workers employed in this sector.
  • Approximately 100,000 people working in the automobile service and dealership industry may also be affected by the strike.
  • NUMSA is demanding a 12 percent pay increase, rectification of wage anomalies between white and black workers within three years, and better conditions of employment.
  • The strike is part of a series of labor disputes that have hit numerous South African industries since mid-July, including a 15,000-member strike by the South African Commercial Catering and Allied Workers Union.
  • Businessmen have warned that the strikes could scare away foreign investors, but union leaders have rejected these statements, saying only exploiters would not invest in South Africa.

Statistics:

  • Rand 110 million ($30 million) daily lost production due to the strike.
  • 25,000 workers on strike.
  • 80,000 workers employed by component manufacturers.
  • Approximately 100,000 people working in the automobile service and dealership industry may be affected.
  • 15,000 members of the South African Commercial Catering and Allied Workers Union on strike.
  • Strikes have affected numerous South African industries since mid-July.

Sources:

  • "Automobile manufacturers try to end strike by 25,000 workers." [Written by Patrick Collings in Johannesburg, edited by Ian McCaleb in Washington]