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Toyota Motor Corp. and Ford Motor Co. are halting output operations at their sites in South Africa, no thanks to an ongoing strike that has crippled supply of components. The National Union of Metalworkers of South Africa (NUMSA) is currently holding strike in the engineering and metals sector in the country.
Mary Willemse, spokeswoman for Toyota in South Africa, disclosed that the carmaker will stop output of the Corolla, Hilux and Fortuner models at its Durban site starting Tuesday as prompted by the ongoing strike in the metals industry, which had cut supply of car components for the models.
Ford spokeswoman Alisea Chetty said that the US carmaker halted production at its Silverton site also because of the strike. Jim Benintende, president of Ford Motor Co.’s Middle East and Africa operations, recently reaffirmed the carmaker’s commitment to South Africa, dousing concerns that the strikes had prompted the US carmaker to mull pulling out of the nation.Read the entire article NUMSA strike prompts Toyota and Ford to halt South African output
The president of Ford Motor Co.’s Middle East and Africa operations, Jim Benintende, reaffirmed the carmaker’s commitment to South Africa, dousing concerns over strikes that the Steel and Engineering Industries Federation of South Africa (SEIFSA) claimed had prompted the US company to mull pulling out of the nation.
SEIFSA said that Ford’s local chief Jeff Nemeth told the federation’s chief executive that "he was under pressure from his head office to pull the company's operation out South Africa." SEIFSA spokeswoman Ollie Madlala said that Nemeth told the federation of concerns within Ford over the strikes.
Over 220,000 workers led by the NUMSA metalworkers union has launched a strike action that has affected supply of auto parts. Benintende said Ford has a long-term commitment to South Africa, adding that the carmaker will soon unveil news about future products.Read the entire article Ford reiterated long-term commitment to South Africa despite strikes
Workers at the port of Baltimore belonging to the International Longshoremen's Association crippled the port’s operation as they launched a strike over a contract row with the Steamship Trade Association. According to the Maryland Port Administration's most recent annual report, the port of Baltimore is the 12th largest in the United States in terms of container volume.
It is also one of the top 10 employment centers in Maryland. The port of Baltimore handled 538,000 vehicle transfers in 2011 and 652,000 in 2012. Chrysler-Fiat spokeswoman Katie Hepler said that they are closely monitoring the situation in Baltimore, hoping for a speedy resolution. "We're aware of it, and we're looking into it," said Nick Beard, a spokesman for Mazda Motor Corp., which inked a contract this year with the port of Baltimore to ship 65,000 vehicles annually.
The row refers to a deal inked by the ILA this year – which covers ports from Maine to Texas – that has to be ratified by all local labor unions, according to Richard Scher, a spokesman for the Maryland Port Administration. One of four Baltimore chapters, Local No. 333, rejected the deal and has announced a work stoppage, said Scher, noting that the Port Administration has nothing to do with the negotiations.Read the entire article Worker strike crippled operations at Port of Baltimore
A strike participated by around 30,000 auto industry employees in South Africa has come to an end after the National Union of Metalworkers of South Africa (NUMSA) accepted a wage offer from companies. NUMSA accepted the offer of a 10-percent increase in the first year and an 8-percent hike in the second and third years from major employers, according to union General-Secretary Irvin Jim.
For employees at small and medium-sized companies, they will receive a 9-percent increase in the first year and 8-percent hike in the second and third years. Workers at seven carmakers operating in South Africa, including Ford and BMW, launched a strike in August and September, leading to around ZAR20 billion ($2 billion) in losses for manufacturers.
A strike by workers in the auto component and retail industries ensued. The National Association of Automobile Manufacturers of South Africa said in an e-mailed statement to Bloomberg on Oct. 1 that vehicle sales in the country dropped in September, with exports falling by 75 percent.Read the entire article NUMSA strike in South Africa ends following pay agreement
Intense labor strikes that affected the auto industry during the past couple of months in South Africa prompted the BMW Group to stop its expansion plan. In a recent interview, BMW spokesman Guy Kilfoil said that any plans to expand its plant or add to its capacity have been put on hold indefinitely. He explained that because of the current state in South Africa, things have changed.
For three weeks in August and September, the plants of BMW, Toyota Motor Corp., and Volkswagen Group in South Africa were shut down as workers went on strike over demands for higher pay. The Automobile Manufacturers Employers Association said that each day that the labor dispute continues, the industry loses up to 700 million rand ($69.6 million).
Complicating matters and adding to losses is the fact that around 72,000 car industry workers from fuel stations to suppliers also went on strike. BMW has not wavered from its long-term plans in South Africa.Read the entire article BMW drops expansion plan in South Africa due to intense labor strikes
A strike continues to cripple operations at a number of carmakers in South Africa amid discussions with National Union of Metalworkers of South Africa. The carmakers -- including Toyota Motor Corp., Nissan Motor Co., BMW AG and General Motors Co. – suspended production Monday as around 30,000 workers launch a strike action to demand higher wages at companies’ sites.
Castro Ngobese, a spokesman for NUMSA, told Bloomberg in a phone interview that the nothing has changed and the strike continues in Pretoria, Durban, Port Elizabeth and East London. He said talks were held and strike committee was to discuss the matter. NUMSA is seeking for a 14-percent annual wage increase, improved medical benefits and shift flexibility.
NUMSA General Secretary Irvin Jim said on Aug. 16, 2013 that companies are willing to offer 10 percent in the first year. The strike is disrupting production in the South African auto industry, which accounts for around 7 percent of the country’s gross domestic product, according to estimates by Department of Trade and Industry. Economists and the manufacturers’ association remarked that a prolonged production stoppage will affect economic growth, foreign direct investment, and South Africa’s reputation as a global vehicle supplier.Read the entire article Strike in South Africa continues to disrupt auto production
Hyundai Motor Co.’s 45,000 union members staged Monday a four-hour walkout that led to lost production of 2,106 vehicles, costing the South Korean carmaker around KRW43.5 billion won ($39 million) in lost output. The union said it will hold another partial strike on Tuesday before resuming discussions with the carmaker’s management on Aug. 22.
Suspended wage discussions at Hyundai Motor in 2012 resulted to what is considered as the costliest walkout in its history, before the carmaker’s management agreed to cut working hours with two shorter day shifts.
Lee Sang Hyun, an analyst at NH Investment & Securities Co., told Bloomberg by phone that the walkout is bad news for Hyundai since “it marks the official start of yet another strike season.” He noted that the strikes are not expected to “last long nor incur more damage than” walkouts in 2012 did, thanks to the shorter working hours.Read the entire article Union strikes in South Korea cost Hyundai around $39 million in lost ouput
A current labor strike in South Africa by 30,000 metalworkers demanding higher pay has affected the production of several carmakers in the country like BMW, General Motors Co. and Volkswagen. Castro Ngobese, a spokesman for the National Union of Metalworkers of South Africa, confirmed to Bloomberg that the strike has started and negotiations have broken down.
He added the NUMSA is waiting for companies to submit a revised offer. The union wants 14 percent annual wage increase alongside improved medical benefits and shift flexibility, according to NUMSA National Treasurer Mphumzi Maqungo.
The labor strike also affective operations at Daimler, Nissan Motor Co., Toyota Motor Corp. and Ford Motor Co. The National Association of Automobile Manufacturers of South Africa expected the strike to cost the auto industry up to ZAR700 million ($69.1 million) daily as it cuts vehicle output by 3,000 vehicles.Read the entire article Strike in South Africa affects vehicle production of Bmw, GM and Vw
Over 2,000 workers at BMW's Rossyln site in South Africa have launched a strike action over pay. Guy Kilfoil, BMW's spokesman in South Africa, said that the workers’ strike at the Rosslyn site just outside Pretoria has likely resulted to a loss of production of nearly 1,700 3-series sedans as of the end of Wednesday.
Kilfoil said production of the cars will be re-allocated to other BMW plants around the world. He said the situation affects BMW’s reputation with customers “quite badly." The Rossyln site builds 82,000 cars annually, almost 70,000 of which are exported to countries like the United States, Canada, Japan and Australia. O
n the other hand, the country’s biggest union for the manufacturing sector -- the National Union of Metalworkers of South Africa (NUMSA) – is planning to launch a national strike in the auto industry from Aug. 19, 2013, following deadlocked wage negotiations, a senior union official disclosed to Reuters.Read the entire article BMW workers are striking in South Africa; output affected
Workers at Hyundai Motor Co. and Kia Motors Corp. in South Korea will launch a strike action to demand for higher wages. Union spokesman Kim Gi Hyuk remarked that over 70 percent of Hyundai's 45,000 union members voted ‘yes’ to giving union leader Moon Yong Moon the authority to call for a walkout at the carmaker.
Workers at Kia also voted ‘yes’ for a strike action on Tuesday. Kim remarked that the strike may start as early as Tuesday, Aug. 20, 2013. Hyundai is already used to work stoppages as its workers have gone on strike in 22 of the past 26 years, but further walkout could further hurt the carmaker’s competitiveness against its Japanese counterparts, which have been able to trim their prices or offer higher incentives thanks to a weaker yen.
While Hyundai has posted a drop in net income for three quarters in a row, Toyota Motor Corp. is expected to log a record annual profit. Lee Sang Hyun, an analyst at NH Investment & Securities Co., remarked that if the union walks out, it would result to a worse-than-expected profit in the third quarter of 2013.Read the entire article Workers at Hyundai and Kia voted yes for a strike action
General Motors' workers at its South Korea sites are planning to stage a partial walkout on July 4, 2013, due to continued disputes over wages and production plans, according to a union spokesman. GM has said it plans to shift output of the next Chevrolet Cruze compact out of South Korea. Reports have suggested that production of the Cruze would be shifted to Opel's Gliwice site in Poland to help offset losses at GM's European unit.
The decision has prompted unions to fear that GM will restructure its South Korean unit. The partial walkout comes during annual wage talks that commenced in April 2013. GM chief executive Dan Akerson and other executives have raised concerns on additional costs related to labor partly due to ongoing wage lawsuits filed by the carmaker's workers in South Korea.
GM's South Korean union remarked that "cost per vehicle" in the country is half of that in Australia and is practically lesser than other countries like Russia. Seventy-nine percent of union members at GM Korea voted last week for launching of a strike action.Read the entire article Workers at GM Korea to strike for six hours on July 4
Workers at Mercedes-Benz's East London site in South Africa have stopped their two-day strike following crisis talks between management and the National Union of Metal Workers of South Africa (NUMSA). According to local reports, workers at the plant commenced their strike on May 27, 2013 after the company decided to probe into stoppages in its paint shop earlier this month.
NUMSA is demanding a 20-percent pay increase for the sector, which may give rise to another manufacturing unrest in the country. Mphumzi Maqungo, national treasurer for NUMSA, told Reuters that if their demands are not met, they have no option but to “go to the streets."
The South African rand dropped to a four-year low against the dollar on May 20, 2013, after Mercedes confirmed that the strike affected production at its East London site.Read the entire article Strike at Mercedes-Benz site in South Africa ends after 2 days
Hyundai Motor Co. may fail to achieve its sales target in September due to labor strikes at its South Korean plants, a company executive with direct knowledge of the sales told Reuters. Hyundai’s employees at its South Korean plants, which build almost half of its vehicles sold around the world, initiated a series of partial strikes and refused to work overtime for five days in July and 21 days in August.
The walkouts were the first strikes to hit Hyundai in four years. Hyundai may also fail to achieve its sales target for its South Korean home market, which accounts for around 15 percent of the carmaker’s total sales, in August, the company executive added to Reuters.
The company executive, however, said that Hyundai, as well as its affiliate Kia Motors, will be able to reach its sales target for the full year of 2012 since they could make up lost production with extra work later in the year. The company executive did not specify how much of Hyundai’s output will be lost due to the strikes as well as the carmaker’s sales target for August and September 2012.Read the entire article Hyundai may miss August and September sales targets due to strikes
Hyundai Motor Co. is now facing threats of strikes after the majority of the carmaker’s labor union members empowered its leaders to hold such actions. Around 70 percent of Hyundai’s 45,000-strong labor union voted on July 11, 2012, to allow Moon Yong Moon and other union leaders to stage walkouts unless the South Korean carmaker increased their wages and reduced their working hours.
The current labor situation at Hyundai is considered as a big blow to the carmaker, since improvements in labor relations have boosted the sales of the carmaker and affiliate Kia Motors Corp. faster than other large car manufacturers in the past four years.
Hyundai suffered financially from the series of labor strikes that plagued the carmaker from 1987 to 2008, resulting to lost sales of over a million vehicles valued at KRW11.6 trillion ($10 billion). James Rooney, chief executive of consulting firm Market Force Co. said the union’s latest action is “not helping Korea," as foreign investors have distorted views of the country.Read the entire article Hyundai faces threat of fresh round of labor strikes in South Korea
The 800 workers of the night shift at Daimler Sprinter van plant in Dusseldorf walked out last Wednesday. Audi and Porsche (owned by Volkswagen AG) will also be hit by strikes as Germany's IG Metall labor seek better pay and terms in the manufacturing industry. On April 30, Daimler’s Rastatt, Germany, plant experienced warning strikes.
The Porsche and Audi plants were expected to suffer strikes on Thursday. An IG Metall spokesman said last Monday that up to 4,500 workers at Audi's plant in Neckarsulm may join a work stoppage together with an hour-long protest rally participated by as many as 2,500 Porsche workers in Stuttgart. Audi's plant in Neckarsulm produces the A4, A6 and A8.
The union, which represents about 800,000 workers in Daimler's home state of Baden-Wuerttemberg, is aiming to get a 6.5% pay increase, unlimited full-time hiring at the end of apprenticeships and heightened influence over the employment of temporary workers.Read the entire article Daimler, Volkswagen workers expand strikes aimed at improving pay and terms
A workers’ strike at the Chrysler Group’s minivan assembly plant in Ontario, Canada had forced a shutdown in production. A warning was issued by Chrysler Group CEO Sergio Marchionne to these workers, saying that he thinks that the next round of talks would be “very difficult.” The strike came after the automaker rejected a proposed contract agreement last Sunday.
Those who joined the strike are around 190 Dakkota Integrated Systems employees who are represented by Canadian Auto Workers Local 444. Dakkota makes instrument panels for the Windsor Assembly Plant's Chrysler Town & Country and Dodge Grand Caravan minivans.
Marchionne asserted that this isn’t the right way to build a car company. The national pact between Chrysler and the CAW is set to expire this September. Chrysler doesn’t have a no-strike deal with the CAW.Read the entire article Production at Chrysler’s minivan assembly plant in Ontario stopped by workers’ strike
A truckers' strike in Turin has had a big impact on the vehicle distribution in Italy, hampering Fiat’s launch of its crucial new-generation Panda minicar. Fiat’s factory in Pomigliano d'Arco, near Naples, will halt the production of the Panda on March 26 and 27. There was also no Panda output on March 16-19. A spokesman told Automotive News Europe that the lost volume due to these stoppages amounted to about 2,800 units.
Market researcher JATO Dynamics said that the Panda is Fiat's topselling car with a volume of 30,705 units after two months. Fiat expected the new Panda to give it a boost this year. Initially, the demand had been strong.
Fiat said that 40,000 dealer orders for the new minicar have been received since its debut in late January. The strike, which began Feb. 20 in protest of the Italian government's austerity measures and the rising fuel prices, has made transporting these cars to dealers an almost impossible task. Fiat said that due to the strike, its total production in Italy fell by 20,000 vehicles.Read the entire article Italy’s truckers strike hits Fiat Panda launch
A labor strike at one of the suppliers of Hyundai Motor and its affiliate Kia Motors led to a parts shortage and resulted to a disruption in the production of several SUV models.
Hyundai said that this situation could have a significant impact as its rivals in Japan are preparing to resume normal production after they struggled to recover after the March 11 earthquake. Starting May 18, 2011, parts supplier Yoosung Enterprise Co. halted production as labor members opposed the new wage and shift systems and moved to occupy production lines.
Yoosung supplies key engine components to Kia, Hyundai, as well as the Korean units of Renault SA, General Motors, and Ssangyong Motor. Yoosung supplies about 70 percent of the piston rings fitted in top-selling models like the Santa Fe SUV, Sonata sedan, the K5 sedan and Sportage R SUVs.Read the entire article Labor strike at one a supplier led Hyundai, Kia to a parts shortage
Hyundai Motor Co.'s temporary workers recently agreed to end a one-month sit-in that disrupted the production of subcompact cars such as the new Accent and the Verna.
Since Nov. 15, 2010, subcontracted employees had occupied a factory in Hyundai's largest domestic production base. Kim Sang-min, a spokesperson for the Korean Metal Workers' Union says it has agreed to end the strike and commence talks with management.
The union is the umbrella union of Hyundai contract workers. The strike had cost Hyundai KPW315 billion ($277 million) in lost production, causing it to report the worst November 2010 sales among Korean automakers.Read the entire article Temporary workers at Hyundai agreed to end strike
The closure of several plants in South Africa will lead to a significant loss of volume in certain brands, including the Polo models that are intended for export markets, according to Volkswagen of South Africa spokesperson Bill Stephens.
This plant in Port Elizabeth exports Polos to right-hand drive markets such as the UK, Ireland, Australia, New Zealand, Malaysia and Singapore.
For eight days last month, General Motors Co., Toyota Motor Corp. and other carmakers shuttered their factories when 31,000 workers, who were asking a 15% pay increase, had gone on strike.The strike ended on Aug. 20 after carmakers agreed to increasing wages by 10%; however, the shutdown resulted to a production loss of about 17,000 cars.Read the entire article Vw shut its South African plant after workers went on strike
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