HUNDREDS of Mercedes-Benz South Africa employees fear losing their jobs if the company goes ahead with a new efficiency plan to outsource some of the company’s logistics operations at the East London plant.
About 500 workers demonstrated at the plant on Friday against the company’s optimisation plan which they said threatened up to 300 factory floor workers. This is nearly 20% of the company’s 1600 hourly-paid employees.
MBSA employs just over 2000 employees in East London alone. Parent company Daimler AG is gearing up for production of the next generation C-class, injecting between R2.5-billion and R2.7-billion into the local plant.
The company recently recruited 800 artisan and technician trainees, 600 of whom stand to be taken on for the new model. MBSA announced last month it was also considering East London as the location for a SUV production.
Tensions have been simmering for weeks over the proposed outsourcing of the logistics operation, however.
The National Union of Metalworkers of South Africa (Numsa) said it was considering industrial action as it was becoming clear the union and employers were “not finding each other” in negotiations.
Numsa local organiser Vuyisile Makupula said the union and employer was deadlocked on the issue, but MBSA said negotiations were ongoing. During the protest , security guards barred the Daily Dispatch from entering, covering the gate with opaque material.
“The company wants another company to handle the logistics aspect of operations as part of the ‘optimisation’ plan,” said a worker, who did not want to be named for fear of reprisals .
“Between 200 and 300 hourly-paid workers will be affected by the outsourcing and could lose jobs. What we are saying is that from 1960 when the firm started we’ve been doing things this way, why change it now?”
Logistics involves the transport and distribution of parts to the assembly lines. MBSA vice-president for manufacturing Arno van der Merwe confirmed the company was seeking ways to get maximum return on its investment and remain competitive.
He said talks with staff representatives, unions and the transformation forum were under way and no final decision had yet been taken. “Various scenarios are being investigated to align the outsourcing with MBSA’s broad-based black economic empowerment /Enterprise Development growth initiatives,” Van der Merwe said.
“A commencement date for the outsourcing, as well as final numbers of affected employees can’ t be confirmed as the scope of the initiative is still under discussion ,” he said.
It was possible all affected employees would be redeployed within the business, he added.
But workers accused MBSA of “playing hide and seek” and stalling negotiations while their future hung in the balance.
Makupula slammed the plan as “short-sighted” and “not well thought through” and said MBSA had produced no compelling reasons to outsource apart from the fact that other companies did the same.
He said a move to the production line would not suit all affected staff.
“We have not been given any information that convinces us this exercise is the correct approach. MBSA said they would continue with the process nonetheless and if they do, we might decide on industrial action although it is not what we desire at the moment. We are still willing to engage with them to change their position,” said Makupula.
Workers were also irked by transport allowances, which they said was unfairly skewed in favour of management while benefits for factory floor workers went to taxi operators.
“Management get cars to get to and from work but us hourly paid workers get nothing. They give taxis R2000 appearance fee but we pay extra money from our pockets to go home.
“W e also have a right to transport allowance,” said another employee who also wanted to remain anonymous .
Van der Merwe said transport allowances were agreed to in the bargaining council. “In a special arrangement, MBSA currently ensures that transport to and from the manufacturing plant is available for workers through an agreement with the local taxi association, who are paid an ‘appearance fee’ to be ready when workers start or end a shift,” said Van der Merwe. —
Fears mount on MBSA jobs
About 500 workers demonstrated at the plant on Friday against the company’s optimisation plan which they said threatened up to 300 factory floor workers. This is nearly 20% of the company’s 1600 hourly-paid employees.
MBSA employs just over 2000 employees in East London alone. Parent company Daimler AG is gearing up for production of the next generation C-class, injecting between R2.5-billion and R2.7-billion into the local plant.
The company recently recruited 800 artisan and technician trainees, 600 of whom stand to be taken on for the new model. MBSA announced last month it was also considering East London as the location for a SUV production.
Tensions have been simmering for weeks over the proposed outsourcing of the logistics operation, however.
The National Union of Metalworkers of South Africa (Numsa) said it was considering industrial action as it was becoming clear the union and employers were “not finding each other” in negotiations.
Numsa local organiser Vuyisile Makupula said the union and employer was deadlocked on the issue, but MBSA said negotiations were ongoing. During the protest , security guards barred the Daily Dispatch from entering, covering the gate with opaque material.
“The company wants another company to handle the logistics aspect of operations as part of the ‘optimisation’ plan,” said a worker, who did not want to be named for fear of reprisals .
“Between 200 and 300 hourly-paid workers will be affected by the outsourcing and could lose jobs. What we are saying is that from 1960 when the firm started we’ve been doing things this way, why change it now?”
Logistics involves the transport and distribution of parts to the assembly lines. MBSA vice-president for manufacturing Arno van der Merwe confirmed the company was seeking ways to get maximum return on its investment and remain competitive.
He said talks with staff representatives, unions and the transformation forum were under way and no final decision had yet been taken. “Various scenarios are being investigated to align the outsourcing with MBSA’s broad-based black economic empowerment /Enterprise Development growth initiatives,” Van der Merwe said.
“A commencement date for the outsourcing, as well as final numbers of affected employees can’ t be confirmed as the scope of the initiative is still under discussion ,” he said.
It was possible all affected employees would be redeployed within the business, he added.
But workers accused MBSA of “playing hide and seek” and stalling negotiations while their future hung in the balance.
Makupula slammed the plan as “short-sighted” and “not well thought through” and said MBSA had produced no compelling reasons to outsource apart from the fact that other companies did the same.
He said a move to the production line would not suit all affected staff.
“We have not been given any information that convinces us this exercise is the correct approach. MBSA said they would continue with the process nonetheless and if they do, we might decide on industrial action although it is not what we desire at the moment. We are still willing to engage with them to change their position,” said Makupula.
Workers were also irked by transport allowances, which they said was unfairly skewed in favour of management while benefits for factory floor workers went to taxi operators.
“Management get cars to get to and from work but us hourly paid workers get nothing. They give taxis R2000 appearance fee but we pay extra money from our pockets to go home.
“W e also have a right to transport allowance,” said another employee who also wanted to remain anonymous .
Van der Merwe said transport allowances were agreed to in the bargaining council. “In a special arrangement, MBSA currently ensures that transport to and from the manufacturing plant is available for workers through an agreement with the local taxi association, who are paid an ‘appearance fee’ to be ready when workers start or end a shift,” said Van der Merwe. —
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