SAFTU: Mercedes-Benz retrenchments ‘about profits’
The South African Federation of Trade Unions says the country’s macroeconomic conditions and prolonged port challenges aren’t the main reasons for the retrenchments at Mercedes-Benz South Africa.
The company announced on Thursday that it had decided to enter a consultation process regarding the restructuring of its manufacturing operations, which could impact 700 jobs at its East London plant.
Logistical challenges at Transnet are some of the reasons the countries’ economic growth forecast was downgraded.
The state-owned company has been battling a huge backlog at the country's seaports for months.
However, SAFTU spokesperson Trevor Shaku said the reason for the restructuring is profit-driven.
“Our claim is backed by the financial records of Mercedes Benz South Africa, which shows it recorded a R4,4 billion profit in 2023, an increase of R1,1 billion from a profit of R3,2 billion in 2022. So, whilst the complaints about other economic factors are legit, they are not the primary reason for restructuring and retrenchments.
“If their transition from a 3-shift model to a 2-shift model will guarantee them value higher than the value they make today, it means workers’ exploitation will intensify and be prolonged. It can only be intensified by bringing better machines and prolonged by extending the working day. This exploitation is meant to achieve nothing but maximised surplus and profits thereof.
“SAFTU firmly rejects retrenchments. Unemployment rose to 12,1 million in quarter 1 of 2024, and any retrenchments will exacerbate the crisis of unemployment. The retrenchments will have severe consequences for the affected employees and their dependents”, added Shaku.
According to Statistics South Africa, the unemployment rate increased from 32.1% in the last quarter of 2023 to 32.9% in the first quarter of 2024.
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