The National Union of Metalworkers of SA (Numsa) has received a notice of retrenchment from General Motors following the company’s announcement that it is pulling out of the country.
“The National Union of Metalworkers of South Africa (Numsa) can confirm that General Motors has issued a notice of retrenchment.
Last week GM announced that it would be disinvesting from South Africa and that it sold its local operations to Isuzu.
The management of General Motors met with NUMSA on Monday as part of consultation and it confirmed that it is winding down manufacturing operations locally‚” Numsa said in a statement late on Monday.
General Motors issued a retrenchment notice to the Commission for Conciliation‚ Mediation and Arbitration (CCMA) in terms of section 189 and section 189A of the Labour Relations Act.
“The company has confirmed that out of a total workforce of 1500 people‚ close to 600 workers are to be retrenched by July 2017. In reality this is more likely to lead to over a thousand job losses in the sector‚ particularly as the closure of GM will impact negatively on companies along the value chain‚” Numsa said.
Numsa said it was concerned about the impact of the job losses on workers and their families.
Last week‚ General Motors SA announced that it would be pulling out its investment in South Africa‚ sending shockwaves through the sector.
There are fears that the disinvestment would impact on many other businesses in the supply value chain and even public sector development.
“We have a crisis with over 35% of the labour force being unemployed. It is unlikely that workers will be able to find employment after retrenchment. The majority of workers in this country support extended family so the job losses will have a devastating impact on the community. Furthermore this decision is likely to have a negative impact on the local economy‚” Numsa said.
Numsa has called a general meeting in which it will discuss the retrenchment in detail with workers.