Strike-weary Ford hopes for quick resolution to labour situation

16th July 2014 By: Irma Venter - Creamer Media Senior Deputy Editor

Strike-weary Ford hopes for quick resolution to labour situation

Ford was “really hopeful” employers and workers would “come together as quickly as possible” to resolve the current strike in South Africa’s metals and engineering industry, said Ford Middle East and Africa president Jim Benintende on Wednesday.

Ford Motor Company of Southern Africa (FMCSA) on Monday and Tuesday did not produce any Ranger bakkies at its Silverton plant, in Pretoria. However, the company resumed limited assembly on Wednesday as it was able “to milk” the supply and logistics chain for the parts the auto maker required, said Ford sub-Saharan African region president and CEO Jeff Nemeth.

Between six and eight parts suppliers to Ford had been affected by the strike.

Benintende told Engineering News Online that the metals strike followed in the wake of last year’s assembly, parts and transport strikes in South Africa, and that the company had become strike weary.

He said Ford in South Africa exported the Ranger to 148 countries, and that consumers were counting on South Africa to produce the vehicles they required.

“It bothers us that we are letting our customers down.”

Benintende noted, however, that Ford was not considering pulling out of South Africa, as some previous reports had hinted.

He again emphasised, though, that it was important for “the two sides to get together and find a resolution”.

He said Ford considered “labour peace” as one of its primary conditions when mulling potential and further investment as a vehicle manufacturer.

“If [the strike] drags on, we are going to let down consumers across the globe. I am sure that is not the reputation South Africa wants.”

Nemeth added that competitiveness was vital, and that any company not using its assets were “hurting its own competitiveness”.

He said Ford produced 350 Rangers a day, and had, thus far, lost 700 units.

Ford had produced 40 000 Rangers at its Silverton plant between January and June 14.

Talks to end the three-week strike in the metals and engineering sector were set to resume this week through formal bargaining council structures after the Steel and Engineering Industries Federation of Southern Africa had been unable to secure a wage agreement with the National Union of Metalworkers of South Africa.