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Business Report writes that trade union federations have categorically rejected the proposed retrenchments at Mercedes-Benz SA (MBSA), saying the jobs bloodbath would have devastating consequences for the workers and the economy.
On Thursday, MBSA announced plans to cut 700 jobs out of roughly 3,000 employees at its East London manufacturing plant due to deteriorating macroeconomic conditions, and prolonged port challenges. The luxury carmaker said it would enter into consultations in line with section 189(3) of the Labour Relations Act after it resolved to restructure its operations from a three-shift model to a two-shift model. But the unions have vowed to wage a relentless battle in defence of workers’ jobs as retrenchments would have a devastating impact on the community and value chains of Buffalo City Metro, and deepen the already high unemployment rate. Cosatu on Friday said this development at MBSA was astounding considering the company had declared a staggering 35% rise in net profit after tax to R4.4 billion for the year ended December 2023. Meanwhile, the SA Federation of Trade Unions (Saftu) also rejected the MBSA retrenchments, saying they would exacerbate the crisis of unemployment. Saftu general secretary Zwelinzima Vavi said that while the complaints about other economic factors were legitimate, “they are not the primary reason for restructuring and retrenchments. As their annual report shows, they are interested in ensuring continued growth of their profit margins.”
- Read the full original of the report in the above regard by Siphelele Dludla at Business Report
- Lees ook, Afleggings by Mercedes-Benz moet voorkom word, sê vakbond, by Maroela Media
Get other news reports at the SA Labour News home page