The shadow of job losses is looming over South Africa as Ford Motor Company of Southern Africa (FMCSA) has officially announced plans to retrench nearly 500 workers across its manufacturing operations in Gqeberha and Silverton. This move comes as Ford initiates a streamlining of its processes at both the Struandale Engine Plant and the Silverton Assembly Plant, raising urgent concerns among unions and stakeholders alike.
Ford has proposed a realignment of its manufacturing operations in both plants to better align with existing and projected manufacturing requirements. The drastic decision to reduce the workforce has ignited a wave of worry among organised labour groups, who are calling for a comprehensive industrialisation policy to address the rising unemployment crisis affecting the country.
The National Union of Metalworkers of South Africa (Numsa) has vehemently condemned the impending layoffs, branding them an assault on the working class. They have stated that the cutbacks could see approximately 474 jobs eliminated, including 391 operator roles in Silverton, 73 in Gqeberha, alongside the loss of 10 administrative positions and 141 fixed-term contracts that are set to expire by December.
Irvin Jim, Numsa’s general secretary, has expressed strong concerns over the implications of these retrenchments. “We have repeatedly stated that we urgently need more manufacturing and industrialisation to create the most needed jobs in order to reverse deindustrialisation that has taken place for the past three decades of our democracy, and stimulate economic growth in the economy,” he said. He warned that these layoffs further exacerbate the de-industrialisation already evident in South Africa’s economic landscape.
The official unemployment rate in South Africa has risen to 33.2%, reflecting a worrying trend where the manufacturing sector continues to shed jobs.
Trade union Solidarity has already raised alarms, suggesting that Ford’s announcement may be an early warning of even greater job losses within South Africa’s entire automotive sector. Willie Venter, Solidarity’s deputy general secretary, highlighted that economic pressures and the government’s unfavourable policies could strip the industry of its competitive edge, stating, “When an automotive giant like Ford takes such drastic steps, it is a warning to the entire industry.” He fears that further retrenchments may be inevitable unless the conditions improve quickly.
In light of recent developments, Numsa has observed a persistent trend where employers, facing declining profits, typically direct their focus on their workforce — the most vulnerable aspect of their operation. “Numsa calls on Ford Motor Company and the CCMA to set up dates for consultation with the union, as we have only 60 days to explore alternatives to a decision that they have taken months to consider. We will engage Ford Motor Company and advocate alternatives to these retrenchments,” said Jim.