The production of the largest vehicle assembly plant of the luxury automobile manufacturer BMW in South Africa was affected by a wage strike in the engineering sector of the largest metalworkers union in the country, said a company spokesman on Monday.
“While our employees reported for work, we have lost production since the start of the strike … as a number of the plant’s suppliers were affected, “Hailey Philander told Reuters.
She said production of around 700 vehicles was lost but there were none further details known.
The National Union of Metalworkers of South Africa (Numsa) went on strike last Tuesday after salary talks with employers’ associations stalled, raising fears that the action would spill over Block deliveries of parts for the production of new cars.
The BMW plant is located in Rosslyn, about 60 kilometers from Hande City of Johannesburg away.
On Friday, Numsa said its members are considering a new proposal to end the strike. On Monday, the union collected feedback before making a decision.
Numsa, with around 155,000 members organized in the industry, wants a nationwide wage increase of 8% and inflation plus 2 in the first year % for the second and third year.
The industry association Steel and Engineering Industries Federation of Southern Africa (Seifsa) had originally offered 4.4% for 2021, inflation plus 0.5% in 2022 and inflation plus 1% in third year.
“It is a matter of concern for the entire automotive sector that the metal and engineering strike is still going on, but we know that negotiations on a solution are advanced and we hope that a breakthrough is imminent, “said Renai Moothilal, executive director of the National Association of Automotive Component and Allied Manufacturers (NAACAM).
Spokespeople for Ford, Volkswagen and Toyota said they were not yet approved d been affected by a strike.