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The National Union of Metalworkers of South Africa (NUMSA) can confirm that General Motors has issued a notice of retrenchment. Last week GM announced that it would be disinvesting from South Africa and that it sold its local operations to Isuzu. The management of General Motors met with NUMSA on Monday as part of consultation and it confirmed that it is winding down manufacturing operations locally.

General Motors has issued a retrenchment notice to the CCMA in terms of section 189 and section 189A of the Labour Relations Act. The company has confirmed that out of a total workforce of 1500 people, close to 600 workers are to be retrenched by July 2017. In reality this is more likely to lead to over a thousand job losses in the sector, particularly as the closure of GM will impact negatively on companies along the value chain.

NUMSA is concerned about the impact these job losses will have on workers and their families. We have a crisis with over 35% of the labour force being unemployed. It is unlikely that workers will be able to find employment after retrenchment. The majority of workers in this country support extended family so the job losses will have a devastating impact on the community. Furthermore this decision is likely to have a negative impact on the local economy.

Issued by National Union of Metalworkers of South Africa