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South African strike disrupts General Motors output

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South African strike disrupts General Motors output

The unappeased labor movements in South Africa made another automotive victim – with general Motors forced to suspend auto production at its most important plant in the country due to parts shortages.

Africa’s largest and most advanced economy has seen rising labor unrest as the wage strike by the National Union of Metalworkers of South Africa (NUMSA) hit auto parts supplies, besides other sectors of the economy, and only coming around a week after a platinum industry five-month walkout ended.

While last year the auto industry in the country was hit by a major labor move, this time the strike is affecting indirectly, as the NUMSA decided to decline an offer made last week by the Steel and Engineering Industry Federation of Southern Africa (SEIFSA).

According to spokeswoman Denise van Huyssteen, the production stop was caused by parts supplier issues and affected the US automaker’s manufacturing facility in the coastal city of Port Elizabeth.

In related news, Toyota, the world’s largest automaker said its business activities in the country have not been hindered by the labor conflict, although the strike shut down the supply of components to the local industry.

Via Reuters

by Aurel Niculescu (my Google+) - Monday, July 7th, 2014 - filed under General Motors, Industry, News, Toyota. Image credit: .
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