Today's Labour News

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vwCity Press reports that 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.  After seeing Stateline had financial problems and that it might not continue supplying, VWSA decided to terminate the contract and look elsewhere for the parts.  The National Union of Metalworkers of SA (Numsa) confirmed last week that so-called section 189 retrenchments notices 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.”  Numsa accused VWSA of terminating the Stateline contract to instead procure goods from a Pretoria-based German manufacturer, but Gennrich denied this.

  • Read this report by Max Matavire in full at Fin24


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