South Africa: First Battery workers strike over retrenchments

The National Union of Metalworkers of South Africa (NUMSA), an IndustriALL Global Union affiliate, called for the strike after First Battery retrenched workers at plants in Benoni, East London, Cape Town and Durban, despite months of consultations aimed at avoiding job losses.

According to NUMSA, First Battery lost major contracts with vehicle assemblers in South Africa and no longer supplies BMW, Mercedes-Benz, Ford or Toyota. Instead of winning back that business through local investment, the union says the company is importing batteries from Germany for BMW rather than upgrading local production to meet automakers’ needs.

NUMSA argues that importing batteries undermines South Africa’s Automotive Masterplan 2035, which targets 60 per cent local content in the automotive industry by 2035. The current local content is about 38 per cent.

The union accused First Battery of wasteful expenditure and of withholding information needed for meaningful consultation under South African labour laws. NUMSA says the company refused to disclose key cost data, including executive pay, electricity costs, and original equipment manufacturer contract terms.

First Battery has offered retrenched workers a severance package of R10,000 (US$616), while NUMSA is demanding R200,000 (US$12,319). The union says the gap shows the company can afford better terms than what it is offering. NUMSA has also criticized Metair for refusing to meet the union before the retrenchments took effect. The union is seeking assistance from the Commission for Conciliation, Mediation and Arbitration (CCMA) to agree on strike-picketing rules after management warnings on possible victimisation of striking workers through disciplinary action.

NUMSA cited Goodyear’s closure of its local tyre-manufacturing plant last year, while retaining its distribution network, as part of a broader pattern it wants regulators to address. The union called on the Department of Trade, Industry and Competition to consider tariffs and import duties to protect South African manufacturers and jobs.

Further, NUMSA wants First Battery to withdraw the retrenchment notices, disclose more financial and strategic information and return to negotiations. The union says talks must include a joint approach to the CCMA and the Unemployment Insurance Fund for a temporary lay-off scheme that would keep workers employed while alternatives are explored.

Irvin Jim, NUMSA general secretary, said:

“There is absolutely no reason why workers should be thrown into the streets to join the sea of poverty, unemployment, and inequality. The least First Battery could have done is to agree with the Union and make an offer of a decent package targeting workers closer to retirement in some companies.”

“In a country where unemployment is high, retrenchments should be a last resort. IndustriALL supports job preservation and encourages employers to negotiate in good faith,”

said Paule-France Ndessomin, IndustriALL regional secretary for Sub-Saharan Africa.

According to Statistics South Africa the expanded unemployment rate which includes discouraged job seekers is 43.7 per cent or 13 million people.