DATE : 19 April 2005
Johannesburg NUMSA PRESS RELEASE – FOR IMMEDIATE RELEASE
NO GUARANTEEE FOR EMPLOYMENT IN THE AUOTOMOBILE COMPANIES.
There is much applause for the massive investments in the automobile sector and for the record 21,2% increase in vehicle sales over the first quarter of last year. The recent applause is on VWSA R750- million investment on state of the art paintshop. But for workers employed in the sector, casual employment, atypical work contracts and outsourcing continue to increase unchecked, imposing heavy burdens on them.
When the union interviewed shopstewards and organisers it emerged that new employment in the automobile companies is not guaranteed:
· At VWSA, 1000 workers are in temporary jobs and outsourcing at its parts distribution unit remain the biggest threat to jobs.
· At Daimler Chrysler there is still a threat to retrench 400 workers despite workers opting to work three or four days a week. The announced employment of 2000 workers will only take place in 2007 with no security of employment.
· At BMWSA workers work short-time. The company offered voluntary separation packages to 154 workers late last year and no new jobs were created. With the coming of the BMW 3-series E90 there is no guarantee of employment.
· At General Motors the company is outsourcing the tool room and an undisclosed number of jobs will be affected. The union has taken the matter to the CCMA for facilitation.
· At Ford Motor corporation, the company has offered more job opportunities to young workers than before. Out of 800 workers, 320 will be taken on fixed learnership programmes and over 400 workers on temporary employment. The union is negotiating for guaranteed permanent employment.
· The situation at Toyota plant is quite encouraging, the union managed to negotiate for permanent employment of 800 workers with the number of undisclosed workers taken on learnership programmes.
· The Nissan company is planning to increase its production capacity and employ between 100 workers before the end of June 2005.
· The Man-Truck company employs 205 workers and only 10 are permanent and labour brokering and outsourcing is very rife and poses serious threat to jobs.
· At Robert BoschSA, the component manufacturing company, the picture of employment is not impressive at all, with the company threatening to retrench 145 workers.
Company restructuring is reducing the workforce in the metalworking industries particularly in South Africa. Dramatic developments in technology over the past decade, particularly digital technologies, have significantly changed industrial processes. The major part of the manufacturing process has been automated leading to reductions in jobs. Employers are introducing new employment practices involving flexible work organization and production systems, non-standard forms of work, and the linking of pay to performance. All of the changes have an adverse effect on workplace rights and protections. The changes in skill requirements resulting from the introduction of new technology, modifications in trade patterns (including growing competition from low wage countries and increased market pressures) and in work organisation will become more pronounced.
The wave of investment must bring different results for workers in the form of guaranteed employment and social benefits. Numsa will utilise a range of mechanisms to engage automobile companies to employ workers on a permanent basis. Among the most important are the negotiation and implementation of International Framework Agreements to force automobile companies to have the same working conditions.
The union will continue to encourage Greenfield investment and discourage unfair trade practices. The World Trade Organisation must be reformed to incorporate labour, social and environmental criteria into its rules. The unions will strive to promote stimulatory economic policies and equitable distribution of growth. It will also ensure that internationally recognised labour standards are applied in every country, and are implemented in agreements on global, regional and bilateral trade and investment.
For more information or interviews contact Dumisa Ntuli at (011) 689-1700 or 0829737282.