General Motors has halted production at its main
South African plant because of the strike by the country's National Union of
Metalworkers.
The US car giant has not been able to access
component parts for its cars.
GM told the BBC that its production line was down,
but that it has enough cars to sell over the next two weeks.
The current strike is targeted at the steel and
engineering sector, which makes products for industries such as mines,
automobiles and telecoms.
"We undertook contingency planning to minimize
disruption of supply to our plant and also to ensure sufficient inventory of
finished vehicles," company spokesperson Gishma Johnson said.
GM, which is not directly affected by the NUMSA
strike, is concerned that if the industrial action lasts more than a few weeks,
it will not be able to stockpile cars such as small trucks and SUVs.
NUMSA workers are demanding a wage increase of 12%
and a housing allowance.
On Thursday night, talks with employers failed to
reach agreement after the union rejected their latest offer.
The strike has been underway for four days, but
already manufacturers are taking the strain. NUMSA says its strike is
indefinite.
Last year, 30,000 NUMSA members in the automotive
sector downed tools. The strike lasted one-month and car makers lost $2bn
(£1.2bn) in revenues, with car exports for the international market dropping by
75%.
The latest NUMSA strike is getting more violent - on
Friday, local media was reporting on armed members intimidating non-striking
workers.
On Thursday, a spokesperson for power company Eskom
confirmed that police fired rubber bullets at a group of picketing workers
outside the Medupi power station.
Workers insisted on picketing at the company, the
main electricity provider, despite a court banning pickets there.
South Africa has seen industrial action across key
sectors of the economy.
A five-month long strike by workers on the country's
platinum mines was resolved one-week ago.
Some commentators have cited the strike as a reason
for the South African economy contracting by 0.6% in the first three months of
the year. Economists are concerned that the NUMSA strike may lead to further
economic decline in the second-quarter.
If that happens, then South Africa will officially
be in a recession as a direct result of labor unrest.
