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Mediation between Metalworkers and Carmakers to Resume in South Africa

Friday, July, 25, 2014


A work stoppage on the part of the 220,000-member National Union of Metalworkers of South Africa has prompted the South African government to try to use the mediation table to end a dispute between the union and more than 12,000 companies in the country, including Nissan, Toyota and Ford.

 

On the heels of a platinum miners’ strike that had huge negative effects on the South African economy, a lengthy strike by the NUM would sink the country into a serious recession or even depression.  As Africa’s second-largest economy, such an event would be disastrous for the whole continent.

 

The work stoppage forced Nissan to close its Rosslyn production plant for a week, and Nissan has announced it might have to reconsider its production schedule if the strike continues for much longer.  Similar steps have been taken at other factories.

 

South Africa has been dealing with a series of large-scale strikes and other work actions in different sectors of the economy, threatening its status as a safe place for corporation to set up subsidiaries and manufacturing plants.  The government is eager to make the NUM strike a short one and get at least one area of the economy back on track.  The hope is that aggressive mediation with the backing and encouragement of the government will get both sides to quickly come to an agreement that will at least avoid a long stoppage and get everyone back to work while negotiations continue.