General Motors leaving SA - over 500 jobs could be affected

FILE PHOTO: Employees work on a Chevrolet Beat car on an assembly line at the General Motors plant in Talegaon, about 118 km (73 miles) from Mumbai September 3, 2012. REUTERS/Danish Siddiqui/File Photo
FILE PHOTO: Employees work on a Chevrolet Beat car on an assembly line at the General Motors plant in Talegaon, about 118 km (73 miles) from Mumbai September 3, 2012. REUTERS/Danish Siddiqui/File Photo

About 589 jobs will likely be affected by General Motors' decision to disinvest from South Africa.

General Motors (GM) on Thursday announced its intention to pull out its operations from South Africa.

In its announcement, the motor manufacturing company said it believed "it is best for Isuzu to integrate our light commercial vehicle manufacturing operations into its African business".

GM has confirmed an estimated 589 jobs are expected to be affected.

"We believe it is in the best interests of our workforce to confirm that it is anticipated that approximately 589 employees will likely be affected by the proposed restructuring," GM said.

"This number is not final and is subject to the consultation process with employees and their representative organisations. Therefore GM cannot provide any further details on this point until the consultation process has been completed."

National Union of Metal Workers SA (Numsa) said it will be consulting its lawyers as GM did not consult unions on its intention to pull its operation out of the country.

“This is the second time that GM is pulling out of South Africa‚ and as NUMSA we smell a rat. We suspect that the shareholders got a very good deal at the expense of the workers. The company has already shut down the plant and has indicated that they will meet with us to discuss the latest developments‚ but that is after the fact‚” Numsa general secretary Irvin Jim said.

General Motors said that it has started a legally required Section 189 process in line with the announcement.

*Additional reporting by Dorette De Swardt

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