The sudden retrenchment at tyre manufacturer Dunlop Tyres SA should be investigated, trade union federation Cosatu has demanded.
The federation suspects the retrenchment is part of economic sabotage orchestrated by multinationals to force a government bailout.
Multinational companies want to cause economic panic
“These retrenchments should be investigated whether they don’t form part of economic sabotage by these companies. Most of them want to cause panic so that the government can bail them out. They are holding the state at ransom,” Cosatu KZN secretary Edwin Mkhize told Sunday World.
Mkhize’s assertions come amid a decision by the tyre manufacturing giant Sumitomo Rubber South Africa trading as Dunlop Tyres SA to restructure. This meant 90 employees at its eMnambithi plant shed their jobs.
Dunlop insists layoffs were necessary to protect its viability
According to the company, the decision was imperative to fortify its long-term sustainability. Sumitomo Rubber is a global company headquartered in Japan. It produces tyres, industrial products and sports goods.
According to the company, the decision to lay off workers had not been easy, but had to be made.
“We thank the Employee Representatives for their contribution during this process and for the open dialogue that saw all teams working very hard to find solutions to limit the number of people impacted. The process is now complete, and 90 employees have been retrenched,” Dunlop Tyres SA CEO, Lubin Ozoux said.
But Cosatu is unrepentant, saying the government should consider buying a stake instead of dishing out money through bailouts.
Government should consider taking a stake before a bailout
“Government must buy shares in these companies as a condition before any bailout is given. They must not dish out money willy-nilly. We are seeing a lot of these companies retrenching workers because they want a government bailout.
Most of the time, like in the case of Dunlop, the products they are manufacturing are in demand. The retrenchments are more than what meets the eye. Their intention is to maximise profits at all costs. They then invest the profits in offshore accounts,” Mkhize stated.
The Dunlop Tyre SA decision to downsize comes hot on the heels of steel giant ArcelorMittal, which closed its long steel business in Newcastle, an area in the same district of uThukela. About 3 500 jobs will be affected by the closure.
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