Concern about auto industry jobs

The United Democratic Movement (UDM) has called on the government to come clean on the ongoing jobs bloodbath in the auto industry.

UDM acting secretary-general Zandile Phiri said her party was concerned about the potential of job losses in the South African motor industry, with little to no response from the government.

She said the recent announcements by Continental’s ContiTech Africa plant in Kariega in the Eastern Cape and Volvo Cars South Africa have painted a “worrying picture of economic instability and declining job security in the motor industry. The problem had spread from manufacturing right up to car dealerships.

“At least 125 jobs are at risk as Continental plans to shut down operations at its Kariega plant. This closure will have devastating consequences for the affected workers and their families, adding to our country’s already high unemployment rate,” Phiri said.

Early this month, the National Union of Metalworkers of South Africa (Numsa) expressed dismay at Volvo’s restructuring plan. This after the company announced that the restructuring may result in the closure of some of its dealerships.

“Numsa is a recognised union, but it has not been officially notified of Volvo’s plans. In terms of the Labour Relations Act, if a company intends to restructure it must officially notify the unions, by issuing a section 189 notice. This has not happened. Instead, Numsa found out about the plans to restructure in the media.”

The union said Volvo’s approach had caused widespread panic to workers at dealerships.

“Numsa is demanding that a formal process must be followed in order to ensure that the rights of workers are not violated in this process. Numsa stands ready to defend workers and their livelihoods, we will do whatever is necessary to defend jobs,” said Numsa spokesperson Phakamile Hlubi-Majola.

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UDM’s Phiri, who vowed that his party would continue to advocate for workers’ rights and demand accountability from both the corporate sector and government, said Volvo Cars South Africa’s decision to restructure and downsize its dealership network has raised further concerns.

While the company claims this move is part of its strategy to strengthen its position as a leader in the electric vehicle (EV) market, it has left hundreds of workers anxious about their future. Some workers’ unions have strongly opposed the decision, criticising Volvo for failing to follow due process and engage employees before making the announcement.

“The UDM is concerned over the government’s silence over these developments. It is unacceptable that workers must face uncertainty and financial hardship in a job-scarce country while leaders remain quiet. The government must intervene to engage with affected companies, workers’ unions and stakeholders to find solutions that protect jobs.

“South Africa cannot afford to lose more jobs while the government watches from the sidelines. We call for transparency from both Continental and Volvo, urging them to communicate openly with their employees and explore alternatives before proceeding with job cuts,“ Phiri said.

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