WeeklySA_AdminRETRENCHMENTS: Automation and putting “profits before people” blamed for jobs bloodbath in the automotive sector
By Ali Mphaki
Angst and anxiety has gripped close to 500 employees at Ford SA who received their letters of retrenchments from the company this week.
The retrenchments will see Fird SA cut 474 jobs at two of its plants- 391 operator positions at its Silverton assembly plant plant in Pretoria and 73 at its Struandale engine plant in Gqebhera and 10 administrative roles at both plants.
The auto giant company has stated that the retrenchments are due to a realignment of its production capacity to fall in line with current and predicted future market demands.
Coming in hot on the heels of tyre producing company Goodyear shutting down it’s SA operatipns, resulting in 900 job losses, Ford SA’s latest salvo has caused great worry for most of the workers in the automotive sector.
As Willir Venter deputy secretary-general of Solidarity puts it: “When an automotive giant like Ford takes such drastic steps, it is a warning for the entire industry”
He opines that Ford SA retrenchmts are possibly the. beginning of greater job losses in the sector
In his book, a combination of economic pressures, uncertain international politics, .and the governments unfavorable policies were to blame for the decline of the sector.
Founded in 1923, Ford SA first assembled its models in Port Elizabeth- the first automobile manufacturer in SA- opening the Silverton plant in 1967/8 before withdrawing from SA in 1986 citing economic and political reasoning returning back in 1994.
The retrehcmnent notices also.come after the company sold 32, 768 vehicles last year, a 6,4% increase in a decline market, the Ford Ranger topping its sales charts with 25, 552 units snapped from showrooms.
Not one to mince her words, Numsa’s Phalamile Hlubi- Majola was forthright; “Ford is prioritizing profits over people’s livelihoods”.
Echoing her sentiments her comrade Irvin Jim added that Nunsa has witnessed a painful pattern that as soon as employers profit are under threat, the first thing they do is to target what they regard as the weakest link.
Over the past two years, South Africa’s auto sector has seen 12 companies closing resulting in more than 4 000 job losses.
Not spared is the steel and engineering sector which also finds itself at a perilous crossroads, with years of deindustrilisation, declining production, job losses and a strong erosion of competitiveness.
Minister of Employment and Labour Nomakhosazana Meth has also weighed in on bhe matter expressing government’s concerns at the steep rise of retrenchments.
She said given the impact of the sluggish economy, which was due to global factors such as trade wars, higher tariffs poses huge challenges.
Various political parties have also called on parliament to discuss the impending crisis as a matter of urgency.
Meanwhile, whilst no official reasons has been given so far. it was quite telling that Ford SA skipped the past weekend’s Festival of Motoring show held at the Kyalami International racing circuit.
