Any hope of further building the South African motor manufacturing industry hinged on harmonious industrial relations, South African Chamber of Commerce and Industry (Sacci) CEO Neren Rau said on Monday, warning that irresponsible actions by unions could lead to disinvestment.

Rau stated that Sacci was concerned by the refusal of the National Union of Metalworkers of South Africa (Numsa) to commit to a collective bargaining agreement that would return motor industry operations to normal.

This comes as a strike in the automotive components sector continued.

“The unrealistic demands by union representatives seem to be at odds with the moderate wishes of workers who are losing weeks of pay during the strike. Employers now face a lose-lose situation; the entire industry can engage in strikes based on the collective bargaining model, but once an agreement is reached there is no guarantee that union representatives in specific manufacturing plants will not again call a strike to get some marginal benefit, while imposing heavy costs on the economy,” Rau said.

He further reiterated the negative impact of strikes on the economy.

“The vehicle manufacturing strike alone cost South Africa an estimated R20-billion. One manufacturer has not produced a single car in the past six weeks, and there is a risk that domestic manufacturers may be losing out on export contracts because of the production delays and uncertainty,” he said.

Rau added that while government did have a role to play in facilitating a conducive labour environment, its most important role was to protect the rights of businesses and workers.

Many workers wanted to work but were prohibited by way of union intimidation and many strikes would, in fact, not have occurred if workers were polled, as illustrated by the recent petrol attendant strike, he said.

Rau concluded that Sacci would write to Labour Minister Mildred Oliphant to ask for the protection of employees who chose to work.