The Industrial Development Cooperation (IDC) has called for proposals for a study into the retention and creation of employment within South Africa’s automotive manufacturing industry.

The development finance institution, on behalf of the Fund for Research into Industrial Development, Growth and Equity (Fridge), aimed to gain a better understanding of the sector’s status since 2005 and table employment-creation recommendations to government and industry.

The IDC, which noted the importance of the automotive manufacturing industry to the country’s economy, believed that the sector had significant job creation potential.

“… a clear picture of the scope and size of the automotive manufacturing industry is necessary to evaluate current policies, as well as inform future policy approaches,” the IDC said.

However, uncertainty about employment levels, employment trends and the factors influencing these levels and trends in several subsectors created difficulties in the credible measurement of the industry’s economic performance and potential, as well as its social contribution to the economy.

The appointed research group would be responsible for establishing credible, accurate employment data for the sector, including the trends, nature and extent of employment levels, employment contracts or relationships from 2005 to date.

The selected service provider would be required to examine the causes of job losses and job gains in the industry, as well as formulate strategic short-, medium-, and long-term solutions replicating employment-growth success stories, measures to avoid job losses and strategies to ensure sustainable employment growth.

Further, research into how government and parastatal procurement policies and practices affected job creation was required.

In the tender documentation, the IDC said technological innovation; workplace restructuring; high input costs; the slow growth of the local market; overcapacity and oversupply in the global motor sector and the growth of low-cost regions; and the impact of the Motor Industry Development Programme (MIDP), besides others, had contributed to shaping the current employment profile of the sector since 2005.

The research company would need to determine the impact of these trends.

The outcomes of the research project, along with practical and effective recommendations, would be presented to the Motor Industry Development Council's Employment Task Team.

The study, the tender for which would close on February 12, was required to be completed within six months of being awarded.