Automotive News South Africa

CTSA and Numsa reach agreement

An agreement was reached last week between Continental Tyre South Africa (CTSA) and striking National Union of Metalworkers of South Africa (Numsa) members which saw the full workforce returning to operation on 10 May 2014. "We are pleased that an amicable agreement could be reached between ourselves and Numsa", said Dieter Horni, MD of CTSA.

The strike which began on 15 April 2014 saw numerous proposals being put forth before acceptance was reached on 9 May. The proposed four shift model will in effect allow weekend shift workers to be paid at time and a half for Saturdays and at double time for Sundays. As a consequence of acceding to this demand, CTSA has to reduce its manning accordingly and will follow the necessary processes as allowed for, in law to do so.

"Whilst we endeavor to maintain a stable work and production environment, a level of business realignment will be necessary in order to accommodate the new shift model and increased wage demands by Numsa", said Horni.

Throughout this process CTSA maintained the rights of employees to express their grievances through industrial action, but cautioned against the business consequences of the protracted action.

Speaking on the impact, Horni said "we will now review and table our losses in order to place corrective measures in place for the sustained competitiveness of the business within the industry."

Horni goes on to state that "we are pleased that through proper planning and the professionalism of the teams we were able to meet the needs of our Original Equipment (OE) clients and replacements markets with minimal disruption."

Continental remains committed to its employees and investment within South Africa, and looks forward to getting back to full production in servicing its clients and the market at large.

Continental Tyre SA currently employs more than 1,600 workers; the company remains dedicated to creating long-term job opportunities in the Nelson Mandela Bay.

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