GM's PE car plant closed

2014-07-05 06:00

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town - General Motors suspended production at its main plant after the strike hit parts supplies, the US manufacturer said on Friday, becoming the latest victim of the relentless labour unrest.

Violence erupted on some picket lines, as the wage strike by the National Union of Metalworkers of South Africa (Numsa) dealt a further blow to an economy damaged by a five-month walkout in the platinum industry that only ended last week.

It will also further unnerve investors, increasingly frustrated by the unremitting labour strife and perceptions that the government is unable, or unwilling, to rein in militant unions.

GM's suspension of output at its plant in Port Elizabeth showed the escalating impact of the walkout, after Numsa rejected an increased wage offer from the Steel and Engineering Industry Federation of Southern Africa (Seifsa).

"The plant has been shut since yesterday because of the parts supplier issues," spokesperson Denise van Huyssteen said.

Numsa's more than 200 000 members went on strike on Tuesday, a move employers say will cost the economy more than $28m a day in lost output.

Seifsa said it offered wage increases of up to 10% late on Thursday, revised from 8%. The union wants hikes of 12 to 15%, more than double the inflation rate.

"Regrettably, it would appear that we continue to be miles apart with the union," Seifsa chief executive Kaizer Nyatsumba said in a statement.

In contrast, Numsa boss Irvin Jim said on Friday he believed the two sides were "not very far from each other". Issues like a youth wage subsidy and the removal of labour brokers were key to a settlement, he told Reuters.

Other sticking points have been Numsa's insistence that any agreement should apply for one year, while employers want to lock down a three-year deal.


Read more on:    gm  |  seifsa  |  numsa  |  port elizabeth
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
33 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 
Traffic
Lottery
 
  • Tuesday Paarden Eiland - 12:20 PM
    Road name: Neptune Street
    TRAFFIC LIGHTS not working at Carlisle Street
  • Tuesday Belhar - 12:12 PM
    Road name: Stellenbosch Arterial Road
    TRAFFIC LIGHTS not working at Symphony Way
 
More traffic reports...
 

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Deal of the Week!

Get bestselling John Green novels now just R99 each! Hurry and get yours while stocks last. Shop here.

Mind blowing deals on beauty & fragrances

Save up to 30% off beauty and fragrances. Offer valid while stocks last. Shop now!

Up to 50% off hair care products!

Save up to 50% on professional hair care products at kalahari.com. Offer valid while stocks last. Shop now!

30% off academic books

Score a mind blowing 30% off academic books! Offer valid while stocks last. Shop now!

Mind blowing deals on electronics!

Save up to 35% on electronics. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

BlackBerry Curve 9360

The BlackBerry Curve 9360 smartphone comes preloaded with Blackberry OS7...

From R1455.00

I'm shopping for:

Horoscopes
Aquarius
Aquarius

Something may come up to alert you of your security needs. It may be that you need to create a better structure for your finances...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.