Trade union federation Cosatu has told its affiliate members to fight tooth and nail in rejecting the Mercedes Benz South Africa’s (MBSA) upcoming “workers’ bloodbath” plan to retrench 700 of its employees, backing the decision with section 189 consultation talks with the workers.
The call was also supported by the South African Federation of Trade Unions (Saftu), arguing the retrenchments would have severe consequences for the workers and their dependants.
The car manufacturing company last week announced it would enter a consultation with employees in terms of the Labour Relations Act to axe 700 employees.
The talks, said MBSA, would entail engagement with the workers regarding plans to restructure manufacturing operations in which the company would “transition” from the current 3-shift model to a 2-shift model – a model both union federations rejected, claiming it would have adverse consequences on the workers.
“Cosatu calls on the unions in the automotive sector to wage a relentless battle in defence of workers’ jobs after Mercedes Benz South Africa announced its plans to cut hundreds of jobs.
“With a 41.9% unemployment rate, we cannot afford to lose a single job. This will have a devastating impact on the community and value chains of Buffalo City, East London,” said Cosatu spokesperson Zanele Sabela.
MBSA attributed its decision to restructure “to deteriorating macroeconomic conditions and prolonged port challenges”.
But the trade union federation said the development “is astounding considering that MBSA declared a staggering 35% rise in net profit after tax to R4.447-billion for the year to December 31, 2023.
“A mere six months later, the global automaker is ready to retrench 700 employees, devastating the families that depend on their earnings,” said Sabela, a sentiment also shared by Saftu’s general secretary, Zwelinzima Vavi, describing the move as “a workers’ bloodbath”.
MBSA is the local arm of German automaker Mercedes Benz AG, whose R10-billion investment in the East London factory was announced with much fanfare in 2018 as part of President Cyril Ramaphosa’s investment drive.
In 2021, the manufacturing plant started producing the C-Class sedan after an additional R3-billion injection.
The investment was lauded as it would create jobs, transfer skills and uplift the surrounding area.
Vavi said Saftu rejected these pending retrenchments.
“The retrenchment will have severe consequences for the affected employees and their dependents.
“With the high unemployment rate, the loss of income will plunge families into debt, making it difficult for them to afford basic necessities,” Vavi said.
