The auto strike--the longest in South Africa since 1995--has shut down nearly all production at plants owned by BMW, Volkswagen, Toyota, Delta, Daimler-Chrysler, Ford, and Nissan.

During the second week of the strike, which began August 6, DaimlerChrysler CEO Christopher Kopke declared in widely publicized advertisements and interviews that unless the strike ended soon, the company would shift production to Germany. "Our survival is at risk!" said one ad. "Should the strike carry on much longer...we could lose the export contract. Consideration may soon have to be given to transferring production from South Africa to Germany. This production would forever be lost to us, our suppliers and South Africa."

NUMSA reacted by raising the stakes, saying it would call out on strike the entire workforce in the local motor trade and component manufacturing, putting 150,000 workers on the picket line compared with the 21,000 who walked out of assembly plants. The union also called for support from international metalworker unions. "Considering the proud history of the German workers and their contribution to the anti-apartheid struggle, we doubt whether they will agree to the scab arrangements," a union statement said. Daimler-Chrysler officials subsequently backed away from their threats.

Another reaction to the threats came from Blade Nzimande, general secretary of the South African Communist Party. "The export deals were brought to South Africa because of our skilled workforce, political stability, good infrastructure and the capacity of the workforce to produce high quality cars. It makes business sense for them to invest in South Africa because of cheap labor costs as compared to DaimlerChrysler Germany," he said.

NUMSA originally set its wage raise demand at 12 percent, then lowered it to 10 percent. The employers are offering a 7.5 percent raise, with a onetime payment of 500 rands (about $60).

Following a failure to resolve the dispute in talks, the Commission for Conciliation, Mediation and Arbitration, a government-appointed body, proposed a 9 percent raise across the board. NUMSA members were scheduled to meet on August 21 to consider this offer. A spokesperson for the employers' association, however, said the companies had not seen the offer, and that it might be "premature."

Car exports from South Africa have grown by nearly 40 percent a year since 1992. "The current 7.5 percent offer is not commensurate with the conditions currently prevailing in the industry," said a NUMSA statement. "Workers' real wages have remained the same over the past three years. The lowest-paid worker earns R16 (about $1.91) an hour for a 40-hour week. It means an ordinary worker earning R16 an hour will not even purchase the very same car he is making."  
 
Walkouts mark negotiation season
The auto strike is the longest so far in this year's annual wage bargaining season, which runs through July and August. Workers have scored wage and other gains in walkouts against Eskom (the state-run electrical utility), and Highveld Steel and Vanadium (the second-biggest steel producer), among others. Strike threats brought some concessions from the employers in gold and coal mines. Major settlements have included wage raises in excess of the current inflation rate.

About 5,400 platinum miners walked out of the Northam Platinum shafts at Thabazimbi in the Northern Province on August 12, and remain on strike in support of their demand for a 15 percent increase.

In addition, millions of workers are expected to take part in a two-day general strike against the government's plans to privatize some state-run entities. The August 29-30 protest follows the failure of talks between the largest trade union federation--the Congress of South African Trade Unions--and the African National Congress government to address union demands on the pace and scope of privatization. Among the unions' central concerns are the layoffs expected from the anticipated "restructuring." The official unemployment rate is already 35 percent.

Trade and Industry Minister Alec Erwin said August 17 that the government would stick to its privatization policy. "It is unlikely that such a basic policy, which has been part of the ANC's central policy since 1990, could that easily be changed. I think that's a very unlikely prospect."

Twelve unions representing state employees are also considering taking strike action after declaring a deadlock in talks. The unions lowered their demand from 15 percent to 9 percent for the lowest paid workers, and 7.5 percent for the highest paid. The government is offering 5.5 percent.

The strike against privatization is set to coincide with the opening of the United Nations conference against racism, which begins August 31 in Durban.  
 
 
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