subject: Vw, Gm, Toyota Raise For South African Workers [print this page] South African automobile producers along with a union representing thousands of car workers have reached a offer on wages, ending a pricey eight-day strike. The Automobile Producers Employers Organisation and union Numsa signed a three-year wage offer on Friday that will see employees obtaining a 10 percent increase this year, and 9 % within the next two years.The unions were seeking 15 % wage hikes, more than triple the country's inflation rate.
The strike hit businesses such as Toyota, Ford, Volkswagen, General Motors, Nissan, BMW and Daimler. The stoppage led to lost production of about 17,000 automobiles, the employers group said. South Africa's auto industry, which the industry stated accounts for about 6 percent to 7 percent from the country's GDP, produces about 420,000 automobiles a year. About half of South Africa's car production is exported to other African states, Europe and North America.
The strike has not stood out within the global context because workers in several major markets have sought wage hikes, feeling they have leverage following carmakers slashed personnel throughout the worldwide financial crisis and are scrambling to man assembly floors now that demand has picked up. But some from the risks GM is required to disclose to investors are a small more telling about where the automaker stands a year after bankruptcy.
They include less than robust internal monetary controls, uncompetitive pay for senior management as a result of caps imposed by GM's government bailout, and the harm that GM's shrinking dealer body could do to U.S. sales and market share. GM said its plan to shrink its U.S. dealer network and drop a number of brands could undermine sales and market share.At the end of June, there were about 5,200 GM dealers within the United States, compared with about five,600 in the end of 2009.
The automaker initially wanted to reduce the quantity of dealerships by about 3,600 to 4,000 over the long term. In 2009, GM terminated franchise agreements with more than 2,000 sellers. But under a new federal law, GM agreed to reinstate a lot more than 700 of them. Some sellers also have been reinstated via a federally mandated arbitration procedure.The company now intends to decrease the quantity of U.S. sellers to about 4,500 by the finish of 2010.
by: Emma Watson.
welcome to Insurances.net (https://www.insurances.net)
