Ladysmith KZN: Tyre factory resumes production at Ladysmith plant
According to Sumitomo Dunlop, they remain committed to their employees and the Ladysmith community as a whole
Management of Sumitomo Rubber South Africa (Sumitomo Dunlop) are pleased to announce that an agreement has been reached between management, NUMSA and employee representatives.
Strike action, which started on October 12, has been halted and the factory re-opened yesterday (Thursday, November 5).
The domestic replacement tyre market, the largest market segment for Sumitomo Dunlop, has seen a decline in sales over the previous three financial years (2017, 2018 and 2019), with sales contracting by nearly 8% in 2019 versus the previous year.
The declining market, coupled with the impact of the Covid-19 pandemic and lockdown, has resulted in a decrease in demand for tyres and has required that the company undergo a restructuring process in order to protect the livelihoods of the majority of employees and position the company for future sustainability.
Also read: Sgumza on the run again?
This involved the reduction of staff by around 10% and the implementation of a Flexible Operating Matrix (FOM), which was agreed upon and will come into effect in January 2021.
According to Sumitomo Dunlop, they remain committed to their employees and the Ladysmith community as a whole, and are grateful for the assistance of former Ladysmith and uThukela mayor Ms Dudu Mazibuko, the mayors of both uThukela and Alfred Duma municipalities, the SAPS, NUMSA, and the Ladysmith business community who engaged with the company and worked towards a resolution that would be beneficial to all stakeholders to ensure sustainability of the company and the community.
