Jeff Nemeth
Photo by: Duane Daws
The South African automotive industry has “worked hard this labour season”, holding a number of “premeetings and indabas”, in an effort to be ready for the triennial negotiations to thrash out a new multiyear wage agreement, says Ford Motor Company sub-Saharan Africa president and CEO Jeff Nemeth.
“Our discussions [with the National Union of Metalworkers of South Africa] have been positive to date. We have not seen any showstoppers on any side. We hope we can weave our way through the negotiations without a strike.”
The 2013 negotiations saw a three-week strike at assembly plants, followed by a four-week strike at component manufacturers.
Nemeth says it is “really important” for South Africa’s reputation to navigate a negotiation season without any work stoppage.
“The global economy is not booming, so all capital allocation is scrutinised very carefully. You don’t want your principal to take a wait-and-see attitude, and a strike will do that,” says Nemeth.
Ford in South Africa this week announced a R2.5-billion investment from its US parent to built the new Everest at its Silverton plant, and to export the vehicle to markets in sub-Saharan Africa.
Attending the announcement of this investment in Pretoria, Ford Middle East and Africa president Jim Benintende said Ford was aware that new labour contracts had to be negotiated within the South African automotive industry.
He noted that previous strikes had led to “downtime” at local plants not once, but many times before.
He said Ford was confident that a fair and equitable wage agreement could be reached, without the need for strike action.