FUTURE investment in Nelson Mandela Bay could be affected by the ongoing strike at Continental Tyre South Africa in Port Elizabeth, managing director Dieter Horni has warned.
The strike, initiated by the National Union of Metalworkers of South Africa (Numsa), enters its third week today, and relates to matters arising from a weekend-pay dispute.
Horni said Continental was able to continue with limited production and to meet the needs of original equipment manufacturers as well as the replacement market.
However, Horni said should the strike continue, it could have a further negative impact on production, including losses experienced to date.
"While we respect the rights of employees to express their grievances through industrial action, protracted action has a detrimental impact not only on production but on the morale of the business.
"We look forward to an amicable agreement being reached between ourselves and Numsa. Continental remains committed to its employees and investment within South Africa, not withstanding recent industrial action which places a burden on the viability of future investments," he said.
Labour disruptions of this nature reflected poorly on South Africa as an investment destination, he said.
"Continental remains resolute in its investments for 2014, with future ones to be reconsidered. We have a responsibility to ensure the long-term competitiveness of our industry versus a growing number of high-volume and low- cost countries."
Numsa regional secretary Pumzile Nodongwe confirmed that the strike was continuing.
He said the union was doing everything in its power to avoid retrenchments due to the amalgamation of the two-shift system.
It was likely the factory would reopen on May 12 or 19, he said.
Continental Tyre SA employs more than 1600 workers. - Cindy Preller