Ford has announced that it plans to retrench more than 470 of its South African employees.
This came in an official notice from the carmaker and was confirmed by trade union Solidarity, which noted that retrenchments will affect the carmaker’s Silverton plant in Pretoria and its Struandale engine plant in Gqeberha.
The retrenchments for these plants will include 391 operator positions from the Silverton plant, 73 from the Struandale plant, and 10 administrative positions.
Ford has stated that these retrenchments are due to a “realignment” of its production capacity to fall in line with current and predicted future market demand.
These retrenchments have raised concerns from Solidarity that it may just be the beginning of a crisis for the automotive sector.
“We see this announcement as possibly the beginning of greater job losses facing the entire automotive industry in South Africa,” Solidarity deputy general secretary Willie Venter said.
“When an automotive giant like Ford takes such drastic steps, it is a warning to the entire industry.”
Venter also noted that the combination of economic pressures, uncertain international politics, and the government’s unfavourable policies has caused industry to become increasingly less competitive.
Consequently, Ford’s retrenchment of South African employees could have a ripple effect on the industry.
In addition to this, the retrenchments will severely impact the plant’s local communities in Pretoria and Gqeberha.
Solidarity has confirmed it intends to attend the consultation process under the guidance and supervision of the Commission for Conciliation, Mediation, and Arbitration and will support all affected union members.
“We will explore every possible alternative to limit job losses, and we will ensure that Ford not only fulfils its duty, but that employees are treated fairly,” Venter said.
Solidarity has reiterated, however, that changes will need to be made in the long term to prevent the situation from worsening.
“Without serious intervention and economic reform from our government, our country will have to endure even more job losses,” Venter warned.
Loading ...
