Strike threatens Toyota SA

Johannesburg - A strike is looming at the GaRankuwa-based vehicle components manufacturer Giflo Engineering, the National Union of Metalworkers of South Africa said in a statement on Monday.

The union said it had until June 17 to resolve a retrenchment dispute with the company in terms of the Commission for Conciliation, Mediation and Arbitration-facilitated consultation process.

"Giflo Engineering wants to retrench 83 out of the approximately 435 workers that it employs," the union said, adding that the reason given was that the company had lost a contract with Toyota South Africa.

According to the contract, vehicle components had to be manufactured within a 100 kilometre radius of the assembly plant in KwaZulu-Natal.

The union alleges that Giflo Engineering refused to disclose "the necessary information regarding this cancellation of contract for Numsa to engage meaningfully in the consultation process".

The union wants to know whether Toyota SA paid any penalty fees as a result of the cancellation, "if indeed any contract was cancelled".

It said it was "high time" such penalty fees be used and suggested that workers be allowed a share of the money.

Numsa said it was preparing to embark on strike action 48 hours from Wednesday June 17 should Giflo Engineering fail to prove "the substantive reasons for its contemplated retrenchments", and why it had disregarded alternatives.

"There is no reason why Toyota SA must be left untouched," Numsa said.

"A secondary strike will be explored to hit hard at Toyota SA for causing all this inconvenience," the union said.

Managing director of Giflo Engineering Raymond Rademan told Sapa that 85 people working in the area of the factory set aside for Toyota SA's components may be retrenched.

"They haven't yet been retrenched, we are still negotiating."

He said the Toyota SA contract had been cancelled and he had "no other work" for the 85 people.

He said he had not yet received notice of strike action from the union.

- Sapa