South African metalworkers’ strike hits output at BMW plant

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CAPE TOWN, Oct 11 (Businesshala) – Production at the main vehicle assembly plant of luxury carmaker BMW (BMWG.DE) in South Africa has been hit by a wage strike in the engineering sector by the country’s largest metalworkers union, a company spokesman said on Monday. Said to .

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“While our colleagues are reporting for work, we have lost production since the strike began … as many of the plant’s suppliers have been affected,” Hailey Philander told Businesshala.

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He said about 700 vehicles produced had been destroyed, but did not give any further details.

The National Union of Metalworkers of South Africa (NUMSA) began a strike last Tuesday after wage negotiations with employer bodies reached an impasse, sparking fears that the crackdown would end and the supply of parts to make new cars was blocked. Will happen.

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BMW has its plant in Roslyn, about 60 kilometers from the commercial city of Johannesburg.

On Friday, NUMSA said its members were considering a new proposal to end the strike. On Monday, the union was still taking feedback before making a decision.

NUMSA, with about 155,000 members organized in the region, wants an 8% wage increase in the first year, and inflation plus 2% for the second and third years.

Industry body Steel and Engineering Industries Federation of Southern Africa (SEIFSA) had initially offered 4.4% for 2021, inflation plus 0.5% in 2022 and inflation plus 1% in the third year.

The company’s executive director Renai Moothilal said, “It is a matter of concern for the entire auto manufacturing sector that the strike in the metals and engineering sector is still continuing, but we know that the negotiations for a solution have progressed and we expect a solution.” Success is imminent.” National Association of Automotive Component and Allied Manufacturers (NAACAM).

Spokesmen for Ford (FN), Volkswagen (VOWG_p.DE) and Toyota (7203.T) said they were not affected by the strike so far.

Reporting by Wendell Rolfe Editing by Promit Mukherjee and Mark Potter

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