Mercedes-Benz South Africa plans to reduce operations at its East London plant from three shifts to two, potentially cutting 700 jobs. The company stated that it has entered a consultation process under Section 189 of the Labour Relations Act to restructure its manufacturing operations. Despite implementing cost-saving and efficiency measures, the company added that the current operating environment remains difficult, necessitating further action for long-term sustainability. The National Union of Metalworkers of South Africa (Numsa) opposes the move, citing concerns for the affected workers and their families, especially in the Eastern Cape where poverty and unemployment are high. South African Federation of Trade Unions spokesperson Trevor Shaku also criticised the retrenchments as profit-driven, noting Mercedes-Benz South Africa’s significant profit increase in 2023. Both unions are committed to consulting with the company to explore alternatives to prevent job losses.
