This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.Business Report writes that Isando-based Girlock Brakes SA has launched a retrenchment programme based on its operational requirements after the reduction by 95% of a Volkswagen (VW) SA contract for the production of rear brakes.
Dean Fragale said the planned retrenchments would affect an estimated 37 employees at the company, which were likely to take effect on 15 June when the VW contract “runs to a close”. Girlock Brakes currently employs 136 people.
Fragale said the new brakes were now to be fully imported and criticised the trade and industry department (DTI) for not promoting local manufacturing, which could provide employment.
He said two of Girlock’s sub-suppliers had closed down since the start of this year because of cheap imports.
“The reason for importing is the agreement with the DTI with the motor industry (Automotive Production and Development Programme), which does not enforce any local content. “This will result in unemployment throughout the industry,” he said.
However, Matt Gennrich, the communications general manager at VW SA, said the reason for the reduction in the contract was that Girlock was unable to meet the technical specifications for the brakes for the new Polo.
Gennrich said Girlock had attempted to extend its technical agreement with Thompson Ramo Wooldridge (TRW) and enter into a technical agreement with another global brakes company but was unsuccessful with both these initiatives. He added that there were limited automotive component suppliers in South Africa and there was not another domestic supplier that could meet the technical specification for the brakes for the new Polo, which had resulted in the decision to now import these brakes.
Fragale said VW’s reasoning was “an excuse not to localise as they don’t want to spend money on tooling and testing” related to a technical agreement. “TRW and other brake designers give any agreement as long as it’s approved by VW. Girlock has been connected to TRW for 50 years and there is no problem getting specifications as long as VW requests it,” he said.
Fragale added that Girlock has supplied VW with about 700 brakes a day for years and has had zero defects in parts per million with the brakes supplied to VW.
He said Girlock had also made brakes for the Ford Motor Company of Southern Africa for 20 years, also with zero defects parts per million, but it lost this contract about four years ago with the start of production of the new Ford.
Read the original report by Roy Cokayne in full on page 18 of Business Report of 5 April 2017
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