GM says 589 staff so far affected
But this number is not final
ABOUT 589 employees out of General Motors South Africa’s (GMSA) total workforce of about 1 500 are expected to be affected by the motor manufacturer’s decision to disinvest from South Africa.
GMSA confirmed on Friday in response to what it referred to as “significantly inaccurate reporting” about the impact of its announcement on its staff.
“We believe it is in the best interests of our workforce to confirm that it is anticipated that approximately 589 employees will likely be affected by the proposed restructuring.
“This number is not final and is subject to the consultation process with employees and their representative organisations. Therefore GM cannot provide any further details on this point until the consultation process has been completed,” it said.
In terms of the disinvestment, GM will stop the sale and manufacture of Chevrolet in the country by the end of this year.
Japan-based Isuzu Motors, through newly established company Isuzu Motors South Africa, plans to acquire GM’s light commercial vehicle manufacturing operations in Struandale in Port Elizabeth and continue manufacturing the Isuzu KB and medium commercial vehicles and heavy duty trucks in Port Elizabeth.
However, both GM and Isuzu Motors SA said last week (correct) that it was premature to comment on the number of employees who would be affected. Apart from GMSA’s direct employees, Isuzu Motors SA plans to trim GMSA’s dealer network down to about 90 from the current 132 dealers.
Ritch Schaafsma, GM’s International vice president, said at a media briefing in Port Elizabeth last week (correct) that GM’s decision to disinvest from South Africa and stop manufacturing and sales of Chevrolet in the domestic market was based strictly on a global decision on where it believed it could get the best return on investment.
“It was not influenced by local economic or political considerations. After considered assessment, we determined that continued or increased investment in manufacturing in South Africa would not provide GM with the strong returns we require to support our global strategy,” Schaafsma said.
Haruyasu Tanishige, the senior executive officer for the sales division of Isuzu Motors, said the company had a longterm interest in the African market and South Africa would serve as an important base.
Isuzu Motors SA will consolidate its light and medium commercial vehicle and heavy truck production at the Struandale plant.
National Union of Metalworkers of South Africa (Numsa) general secretary Irvin Jim said although Isuzu would be taking over GM’s operations in South Africa, Numsa doubted Isuzu would absorb all the workers who used to work for GM.
“We are consulting lawyers to see what legal avenue we have in resolving this crisis,” he said.
Regret and concern
Trade and industry minister Rob Davies said he had learnt of GM’s decision “with regret and concern” for the many employees whose jobs and livelihood would be directly and indirectly affected by it.
The National Association of Automobile Manufacturers of South Africa (Naamsa), however, welcomed the sale, arguing that it was linked to a decision by General Motors International to restructure some of its global operations.
The association said it was not able to comment on specific aspects of the decision, but stressed the automotive industry in South Africa remained a vibrant and strategically important part of the economy.
It said the industry was working closely with the government and other stakeholders to formulate the post 2020 automotive development programme, specifically to provide the industry and vehicle manufacturers with certainty and stability to enable automotive companies to invest and operate in South Africa with confidence.
“The industry’s medium to long-term prospects will depend on the performance of the South African economy and the global economy which, at this stage, continue to look reasonably positive,” Naamsa said.