The National Union of Metalworkers of South Africa (Numsa) has announced that it received a notification from Mercedes-Benz South Africa (MBSA) regarding plans to initiate retrenchments in line with Section 189.
According to Numsa, MBSA is contemplating the retrenchment of 702 employees. The job categories most at risk include artisans (67), team managers (23), and 612 hourly employees.
In a statement released on Thursday, MBSA highlighted the challenges faced by the automotive industry in recent years, which have also affected the company and its suppliers.
“In recent years, the automotive industry has contended with several challenges which have also impacted MBSA and its suppliers. These challenges include deteriorating macroeconomic conditions and prolonged port challenges.
The company further elaborated on the issues affecting overall consumer sentiment:
“Overall consumer sentiment has suffered as a result of fluctuations in the exchange rate, subdued household income, rising fuel prices as well as increased energy and logistics costs,”
the statement read.
Irvin Jim, the general secretary of Numsa, expressed the union’s concerns regarding MBSA’s stance.
“Numsa is dismayed by the section 189 notice. We are deeply concerned about workers and their families who will be affected if the company goes through with the retrenchments,”
said Jim.
He emphasized the potential impact on the Eastern Cape, where most MBSA employees are located.
“The Eastern Cape province where the majority of MBSA workers are based, will be hardest hit, because of high levels of poverty and unemployment. It is unlikely that workers will find alternative employment if the MBSA implements the proposed retrenchments,”
Jim noted.
Numsa has indicated that it will request the Commission for Conciliation, Mediation, and Arbitration (CCMA) to set dates for the first meeting to discuss the matter with the employer.
The union has committed to exploring all possible alternatives to prevent job losses.
