The strike over bonuses at Ford SA strongly indicates that greedy company bosses are hell-bent on rewarding themselves while sidelining workers.
These were the sentiments of trade -union federation the South African Federation of Trade Unions (Saftu) as it threw its weight behind metalworkers union Numsa’s strike.
Numsa members took to the streets on Thursday and Friday at two assembly and engine plants, which employ an estimated 4 300 people.
The strike comes after a deadlock between Ford Motor Company and Numsa following negotiations that have taken place over the past two years.
The industrial action comes after the company’s US-based multinational automaker, with headquarters located in Dearborn, Michigan, awarded its workers in America bonuses.
According to a US publication, The Detroit News, Ford Motor Company announced in February that it will pay profit-sharing bonuses to its workers. It said it will pay, on average, $10 400 (R193 500) to hourly autoworkers. This pertains to workers in the US for the financial year 2023.
Locally, the company has a multi-billion-rand assembly plant in Silverton, Pretoria, where the new generation Ford Ranger is being produced for the domestic and export markets.
The company also has an engine plant in Struan, Gqeberha.
Saftu general secretary Zwelinzima-Vavi questioned why it was only the company executives who were guaranteed -bonuses. “Given the profit growths the company has been able to score in the past several years, Saftu argues that Ford can afford the annual bonuses, not just incentive bonuses.
“Remuneration packages are a claim on past earnings, and therefore, the net profits of the past year are a testament that the company can be able to afford the bonuses,” Vavi said.
“Effectively, the company can afford annual bonuses to workers because it makes profits each year. Furthermore, bonuses, like basic remuneration and profit, come from the surplus value that is created by workers in production.
“Primarily due to this, they are -entitled to better remuneration, including bonuses, because they alone create the surplus value. Such surpluses should not only contribute to the wealth growth of shareholders but must benefit the workers who create it.
“It is preposterous that only those who supervise the production process, i.e., company executives, are guaranteed annual bonuses, while workers are offered ‘incentive bonuses’ that are based on how well they can slave themselves to meet company targets,” said Vavi.
He stated that the failure to award bonuses to workers explained why the income inequalities have grown wider, with 80% of the wealth concentrated in the hands of the few, while 80% of the population shares only 20% of the wealth.
“Fighting for bonuses and better salaries is, therefore, a struggle not only to improve living standards but to close the income disparities that have made South Africa the most unequal society on earth,” said Vavi.
When asked about the strike’s ripple effect on the automotive sector’s value chain, Mikel Mabasa, the Automotive Business Council chief executive officer, told Sunday World on Friday that they had decided not to comment on the matter. Attempts to obtain comment from the Steel and Engineering Industries Federation of Southern Africa, which represents service providers in various sectors, including the automotive sector, drew blanks.
According to the Automotive Business Council, the aggregate new vehicle sales during the first quarter of 2024 recorded a decline of 5,6% compared to the corresponding quarter 2023 and a marginal increase of 0,2% compared to the fourth quarter
While the South African vehicle production market share increased from 0,65% in 2022 to 0,67% in 2023, in the first quarter of 2024 domestic vehicle production reflected a decline of 2,2% compared to the corresponding quarter 2023 linked to a constraint domestic new vehicle market along with lower vehicle exports.
