South Africa: Labour strikes impact auto suppliers
Press in South Africa have reported that labour disputes in the country are harming its auto components industry, which supports 40,000 jobs in the Eastern Cape.
Robert Houdet, executive director of the National Association of Automobile Component and Allied Manufacturers, suggested that although Botswana currently exports its wet blue skins to South Africa for processing, tanning and seat manufacturing capabilities could be established there instead.
He told the Business Report: “Delivering on time is non-negotiable in the automotive industry and labour stability is crucial to keep delivering on time. If you cannot deliver on time, overseas buyers will find an alternative source.”
Last year the Automotive Leather Company relocated from Pretoria to Lesotho.
However, the rising cost of electricity and water and logistics have been countered by a weakening rand, increased demand in export countries and South Africa’s favourable trade agreements, said the report.
