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Business Report writes that Isando-based Girlock Brakes SA has launched a retrenchment programme based on its operational requirements. This comes after the reduction by 95% of a Volkswagen (VW) SA contract for the production of rear brakes.
The company’s Dean Fragale said the planned retrenchments would affect an estimated 37 employees at the company, which were likely to take effect on 15 June when the VW contract “runs to a close”. Girlock currently employs 136 people. He indicated that the new brakes were now to be fully imported. Fragale criticised the trade and industry department (DTI) for not promoting local manufacturing and said two of Girlock’s sub-suppliers had closed down since the start of this year because of cheap imports. “The reason for importing is the agreement with the DTI with the motor industry, which does not enforce any local content. This will result in unemployment throughout the industry,” he claimed. However, Matt Gennrich of VW SA said the reason for the reduction in the contract was that Girlock was unable to meet the technical specifications for the brakes for the new Polo.
- Read an extended summary of this report by Roy Cokayne at SA Labour News
Get other news reports at the SA Labour News home page