JOHANNESBURG – The National Union of Metalworkers of South Africa (Numsa) has confirmed that General Motors has issued a notice of retrenchment to its employees.
Last week, the company announced that it would be shutting down its operations in the country by the end of the year.
Following a meeting with Numsa on Monday, the car manufacturer told the union that around 600 workers will be retrenched by July.
Numsa’s Phakamile Hlubi says they believe the impact will be far worse.
“This is more likely to lead to more than 1,000 job losses in the sector, particularly as the closure of GM will impact negatively on companies along the value chain. Numsa is concerned about the impact these job losses will have on workers and their families.”
GM has been manufacturing vehicles in the country since 1926 but decided to cease operations as part of the company’s plans of restructuring its international operations to improve overall financial performance.
Last week, the company’s president and managing director, Ian Nicholls, explained that this was a global decision and Isuzu will be taking over at least half of its production.
“Investment in South Africa would not provide GM with strong returns and coming out of that was the opportunity to work with our long-standing partner Isuzu and it’s great that they have decided to invest in South Africa.”
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