According to the union, the company is considering laying go off 702 employees. The plant currently builds the Mercedes C-Class for export. Picture: Supplied
The National Union of Metalworkers of South Africa (Numsa) said that it got an alert from Mercedes-Benz South Africa (MBSA) telling it that it intends to conduct retrenchments in accordance with Section 189.
According to the union, MBSA is considering laying off 702 employees, with artisans (67), team managers (23) and 612 hourly employees among the job categories most likely to be affected.
“In recent years, the automotive industry has contended with several challenges which have also impacted MBSA and its suppliers. These challenges include deteriorating macroeconomic conditions and prolonged port challenges.
“Overall consumer sentiment has suffered as a result of fluctuations in the exchange rate, subdued household income, rising fuel prices as well as increased energy and logistics costs,” the company said in a statement on Thursday.
Numsa general secretary Irvin Jim said MBSA claims to operate under severe conditions.
“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,” said Jim.
He pointed out the union will request that the Commission for Conciliation, Mediation and Arbitration (CCMA) set dates for the first meeting so that they may discuss the issue with the employer.
Numsa said that it will do everything necessary to supply alternatives, with the intention of preventing job losses.
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