Johannesburg - The automotive industry remained fundamental to South Africa’s socio-economic prosperity, growth and development and its long-term future would depend on the goodwill and co-operation of business, labour and government, according to the industry’s association.
Mike Whitfield, the president of the National Association of Automobile Manufacturers of SA (Naamsa), said yesterday that the industry’s remarkable performance in recent years required ongoing co-operation between the social partners and particularly a commitment to industrial relations stability throughout the automotive value chain to further enhance the industry’s social and economic contribution to South Africa, particularly for the employees’ benefit.
Whitfield referred to the difficult domestic trading environment confronting the automotive industry in South Africa and highlighted the achievements of the industry.
He referred to independent research commissioned by Naamsa last year to determine the industry’s social and economic contribution to South Africa, adding that the findings would be released in the fourth quarter of this year.
However, no mention was made about the negotiations taking place with the National Union of Metalworkers of SA (Numsa) about a new agreement for the industry.
Stephen Nhlapo, Numsa’s chief negotiator, confirmed to Business Report last week that the union had not concluded any agreements with the Automobile Manufacturers Employers Organisation (Ameo). Nhlapo said the parties had agreed to have a last negotiation meeting in the coming weeks. Numsa’s demands include a one-year, rather than a three-year, agreement and a 20 percent wage increase.
Ameo declined to comment on the negotiations.
Whitfield said it was important to acknowledge the Trade and Industry Department’s role in providing manufacturers with long-term policy certainty.
Whitfield said this had contributed to capital investment of more than R28 billion by vehicle and component manufactures over the past four years. He said growth and development of the industry had over the past 20 years contributed substantially to the economy, with 115 000 high skill level employees gainfully employed in component and vehicle production.
He said total industry employment had been determined at 496 000 last year, while the industry’s linkages with other sectors had created hundreds of thousands of additional employment opportunities.
Whitfield said the industry contributed 7.5 percent to gross domestic product, while vehicle and component production accounted for 33.5 percent of the country’s manufacturing output. Automotive products valued at R151.1bn were exported last year, representing 14.6 percent of total South African exports, and 333 802 vehicles were exported to more than 100 countries last year to contribute to the first positive industry trade balance of R5.6bn, he said.
BUSINESS REPORT