Cape Town — The National Union of Metalworkers in South Africa (NUMSA) expressed its disappointment over the decision made by Mercedes-Benz South Africa (MBSA) to retrench more than 700 workers.
In a NUMSA statement, it said MBSA informed them that it was considering retrenching 702 workers in total that included 67 artisans, 23 team managers and 612 hourly employees.
MBSA, who employs 3 396 employees, said it was currently operating under difficult conditions and cited various reasons for the retrenchment, including “prolonged port challenges” and “subdued household income”.
“Numsa is dismayed 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. The Eastern Cape province where the majority of MBSA workers are based, will be hardest hit, because of high levels of poverty and unemployment. It is unlikely that workers will find alternative employment if the MBSA implements the proposed retrenchments,” NUMSA general secretary, Irvin Jim, said.
NUMSA is dismayed that Mercedes-Benz South Africa is contemplating retrenchments.@IrvinJimSA Details in the statement 👇🏾 #ForTheLoveofTheWorkingClass
❤️🖤💛 pic.twitter.com/JereDo2ppX— NUMSA (@Numsa_Media) June 13, 2024
According to The Citizen, MBSA CEO, Andreas Brand, said it took the decision to enter consultations in accordance with Section 189 (A) of the Labour Relations Act.
Brand said this will involve discussions regarding the restructuring of its manufacturing operations and transitioning from a three-shift to a two-shift model. He added that this decision was communicated to MBSA’s union partners on Thursday morning in line with South Africa’s labour regulations.
He said MBSA had three consecutive years of steady increases in sales volumes from 2021 until 2023 but saw the opposite trend in 2024. He was not prepared to disclose the percentage of MBSA’s production volume. MBSA has a fully flexible production network and used these flexibility instruments before embarking on “such harmful processes”.
He stressed MBSA would not be targeting specific people in the headcount reduction process and that retrenchment is only one instrument to reduce headcount numbers and MBSA will be using the full range of tools available to it to achieve the headcount reduction.
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Compiled by Matthew Petersen
