Toyota wildcat strike over but car makers still uneasy

TOYOTA yesterday resolved a strike it had described as “unprocedural and illegal” at its Durban factory.

The strike ended after more than a day of talks between representatives of the National Union of Metalworkers of SA (Numsa), staff and management at the plant as the lines lay still. Toyota spokesman Leo Kok said no details of the agreement were available immediately, but that Numsa, management and all staff had agreed to the terms.

He said the wildcat strike had cost the company 2,428 vehicles and, given that the plant was running at its full current capacity of 17,300 vehicles a month (including its assembly unit), the lost vehicles would have to be caught up through overtime work and weekend operations, which would be more expensive to run.

The strike started on Monday, when workers failed to turn up for work at the factory from the second shift. Motor industry insiders this week said the strike would have an effect on the country’s image, and could affect the ability to attract further automotive investment, as the government wishes to do.

This was because, according to Mr Kok, Toyota negotiated a threeyear pay deal only a year ago, which was supposed to expire “midway through 2014”.

The news came after Ford’s Asia Pacific boss, Joe Hinrichs, spoke on Tuesday of the company’s “frustration” with stoppages in SA. The reason for the Toyota strike was not clear, but it appeared the dispute was to do with a R3.22 per hour premium “some skilled workers” were paid.

The stayaway by its own workers was not the only concern for Toyota, which was also being affected by the truck drivers’ strike.

Mr Kok said in any event, the plant would have been affected in some way from Monday.

Other motor manufacturers were also affected by the drivers’ strike, with Ford in SA saying it had “lost some production” at its factory in Silverton, outside Pretoria.

The company’s head of sales and marketing, Dean Stoneley, said yesterday “a parts stockpile allowed us to keep on running, but we’re getting to the stage where we’re losing some production”. Mr Stoneley said the issue was out of the company’s hands, and that Ford was “focusing on controlling the controllables”. “Both our shifts are not running at maximum capacity,” he said.

BMW was also affected, “losing 30 cars last week” after axles were not delivered to the company’s Rosslyn, Pretoria, factory.

Spokesman Guy Kilfoil said the company had “made up the 30 cars last week already, and are now ahead of programme for this week”.

“The bigger concern is getting cars to the dealers,” Mr Kilfoil said, but added that the strike was “not a major upset at the moment”.

Volkswagen SA spokesman Matt Gennrich said yesterday the company’s Uitenhage plant had “lost no production” but that the continuing strike presented a “significant challenge” to the company.

“We’re not in any immediate danger, but it requires day-to-day management,” Mr Gennrich said. “These unprotected strikes are not good for the country’s image.”