By Irma Venter.
The Ford Motor Company of Southern Africa (FMCSA) has announced that it will cut jobs at its Struandale Engine Plant, in Gqeberha, and at its Silverton Assembly Plant in Pretoria.
The local arm of the US car maker says in a statement that it is “making the necessary adjustments to its manufacturing operations…as part of our ongoing efforts to optimise production and respond to evolving market demands”.
The job cuts will be yet another hit to the under-fire automotive industry in the Eastern Cape, which has already seen the closure of the Goodyear and ContiTech opeations.
According to trade union Solidarity, FMCSA will lay off more than 470 employees.
FMCSA did not share the number of people affected.
Solidarity believes the process will see the termination of 391 operator positions at Silverton, 73 at Struandale, as well as ten administrative positions.
“We see this announcement as possibly the beginning of greater job losses facing the entire automotive industry in South Africa,” says trade union Solidarity deputy general-secretary Willie Venter.
According to Venter, economic pressures, international political uncertainties, and government’s unfavourable policies are causing the local automotive industry to become increasingly less competitive.
“When an automotive giant like Ford takes such drastic steps, it is a warning to the entire industry.
“We fear that further retrenchments in this industry may be inevitable if conditions do not improve quickly.
“Without serious intervention and economic reform from our government, our country will have to endure even more job losses,” says Venter.
The automotive industry is South Africa’s largest manufacturing sector. FMCSA produces the Ranger bakkie for the local and export markets.