Daily Investor reports that Ford South Africa has sent an official notice of its intention to retrench more than 470 employees in the country. This was confirmed by trade union Solidarity, which said these retrenchments will affect the vehicle manufacturers’ Silverton plant in Pretoria and its Struandale engine plant in Gqeberha. According to the notice, Ford said the job losses follow a “realignment” of its production capacity to match current and expected market demands. 

This means terminating 391 operator positions in Silverton, 73 at Struandale and 10 administrative positions.  During a consultation process, Solidarity plans to determine the cause of the drastic reduction in Ford’s vehicle sales, which is giving rise to these job losses. “We see this announcement as possibly the beginning of greater job losses facing the entire automotive industry in South Africa,” Solidarity deputy general secretary Willie Venter said.

According to Venter, economic pressures, international political uncertainties, and the government’s unfavourable policies are causing this industry to become increasingly less competitive.  “When an automotive giant like Ford takes such drastic steps, it is a warning to the entire industry,” Venter said.  “We fear that further retrenchments in this industry may be inevitable if conditions do not improve quickly.”

Solidarity further confirmed that it will attend the consultation process under the guidance and supervision of the Commission for Conciliation, Mediation and Arbitration and that all its members affected will receive full support. “We will explore every possible alternative to limit job losses, and we will ensure that Ford not only fulfils its duty, but that employees are treated fairly,” Venter said.

Solidarity also pointed out that these retrenchments will seriously impact the communities in Pretoria and Gqeberha, and it is once again indicative of how vulnerable South African industries are under the current economic climate. “Without serious intervention and economic reform from our government, our country will have to endure even more job losses,” Venter warned.

by Bianke Neethling