Numsa to embark on strike at Ford SA from Thursday

The National Union of Metalworkers of SA (Numsa) is set to embark on indefinite strike at US motor company Ford, which could disrupt production and throw global supply chain processes into disarray when thousands of workers abandon their posts on Thursday. 

“The reason for the strike is that Ford is refusing to share its profits with workers. Our members are the creators of wealth and Ford has benefited hugely from the sweat and labour of workers,” Numsa general secretary Irvin Jim said in a statement . 

“Ford management pretends not to understand the demand and they keep claiming it is ‘impermissible’ and they claim that workers have no right to demand bonuses. We reject this with the contempt it deserves.”

The automotive sector, according to government data, is one of the country’s largest economic sectors, contributing 4.3% to GDP. The industry is also the country's fifth-largest export sector accounting 18.1% of total exports and employs more than 110,000 people. 

The union, one of the largest in SA with a membership of more than 450,000, has served Ford SA with a 48-hour strike notice, said Jim. 

“The Numsa president, Andrew Chirwa, addressed more than 3,000 workers at the quarterly general meeting and workers are angry that Ford is trying to deny them bonuses. Ford failed to reach an agreement with Numsa at the conciliation held on June 11 at the CCMA offices in Pretoria. After picketing rules were concluded, the commissioner issued the certificate to strike,” Jim said. 

He said Ford SA could afford to pay workers “some kind of a bonus” as the company had “made a fortune” over the last four years, adding: “According to Macrotrends, in the last year their gross profit for the 12 months ending March 31 2024 was $25.137bn, a 0.45% increase year over year. In 2023 gross profit was $25bn. In 2022, gross profit was $23bn. In 2021, during lockdown, gross profit was $21.69bn.” 

In November 2023, Ford SA said it was spending R5.2bn to turn its SA subsidiary into the only global manufacturer of plug-in, hybrid-electric Ranger bakkies.

Business Day has reported that by the time the investment is complete late in 2024, Ford will have spent R35bn on its SA operations since 2011, when the Silverton vehicle assembly plant in Tshwane switched exclusively to Ranger production.

Ford SA corporate communications manager Duduzile Nxele said: “Ford is requesting non-striking employees work from home for the duration of the strike. Ford has a long-term commitment to SA and has invested heavily in its operations and local employees.

“Regrettably, production disruptions have a profound impact on SA’s economy and global reputation as a place to do business. When making decisions about future investment, consistency of production is vital to maintaining competitiveness and an important factor when determining manufacturing locations.”

mkentanel@businesslive.co.za