Bay jobs crisis

SCORES of Nelson Mandela Bay households face a bleak Christmas with the city's economy so hammered that some companies have shut their doors while others have laid off hundreds of workers just to stay in business.

Described as one of the toughest years in business as South Africa's economy is pushed to the brink of recession, the Nelson Mandela Bay Business Chamber said employers in the city were under enormous pressure, with many fighting for survival.

Uitenhage automotive supplier firm SP Metal Forgings is in the process of laying off 150 workers.

The company said rising labour and electricity costs had made it increasingly difficult to compete globally.

"To keep our doors open, we had to do this [layoffs] to improve our cost base," SP Metal Forgings managing director Ken Manners said.

"We will look at employing more people in the future, but right now that was the only option we had."

National Union of Metalworkers of SA (Numsa) Eastern Cape regional secretary Phumzile Nodongwe said the union was concerned about the workload of the remaining employees.

More than 10 furniture retailers in the Bay which are part of Ellerine Holdings have shut operations since August. They include Furniture City in Newton Park, as well as three Geen & Richards and eight Ellerines stores in the Bay.  -  Cindy Preller