Eastern Cape parts supplier cuts 150 jobs

Another components supplier is closing down in the Eastern Cape, leaving more than 150 workers jobless as its contract with Volkswagen SA (VWSA) has been terminated.

Stateline Pressed Metal, which has branches in Port Elizabeth and Queenstown, used to supply Polo components to VWSA.

VWSA, after seeing Stateline had financial problems and that it might not continue supplying, decided to terminate the contract and look elsewhere for the parts.

The National Union of Metalworkers of SA (Numsa), the union that represents the motor industry, confirmed this week that section 189 notices, which indicate the details of restructuring and potential job losses, had already been issued to Stateline’s employees.

VWSA spokesperson Matt Gennrich said: “Stateline is in effect bankrupt, and while we may assist in the short term, there is no long-term assistance available or additional business from VWSA.”

Stateline was started in 1983 and employs 154 people at its two branches.

Numsa spokesperson Phakamile Hlubi confirmed that a section 189 notice had been issued to Stateline’s employees.

Numsa has accused VWSA of terminating the Stateline contract to instead procure goods from a Pretoria-based German manufacturer.

However, Gennrich has denied this, saying: “No contract has been awarded yet to a new supplier.”

Late last year, General Motors exited South Africa.

A study conducted by Numsa on the impact on the auto industry caused by General Motors’ exit revealed that about 961 workers from various small companies that did business with the company were retrenched. 

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
15.64
-1.1%
Rand - Pound
20.93
-1.1%
Rand - Euro
17.45
-1.2%
Rand - Aus dollar
10.93
-0.4%
Rand - Yen
0.14
-1.1%
Gold
1,786.37
-0.6%
Silver
22.29
-2.1%
Palladium
2,384.66
+0.4%
Platinum
1,010.00
-1.6%
Brent Crude
89.34
-0.7%
Top 40
67,021
-0.1%
All Share
73,455
-0.1%
Resource 10
74,081
-1.4%
Industrial 25
90,993
+0.6%
Financial 15
15,218
+1.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot