BMW loses 2,100 cars a day due to South African strike

The halt of production in the BMW South Africa plant is causing more than 2,100 vehicles to not be produced every day. As we have reported yesterday, the BMW plant in South Africa has temporarily closed down when the worker’s strike started last Wednesday. BMW was forced to do so because they cannot make any cars without workers.

Half of the estimated 2,100 vehicles lost everyday is supposed to be shipped to export markets according to the Automobile Manufacturers Employers Organization yesterday.

The worker’s demand of a 15% one year pay plus increases in bonuses and sick-leave pay is unrealistic, according to the Automobile Manufacturers Employers Organization. They also said that the workers have failed to take into consideration the competitive nature of the global auto industry at this time, and that there are auto manufacturers in other countries that definitely cost less than what is spent in South Africa for auto production. BMW and other car companies have offered the workers a 7% increase in wages for a span of three years, but the National Union of Metalworkers of South Africa has declined the offer and sticks to their original demand.

South Africa’s economy is also suffering from this worker strike. Approximately 6% of the country’s GDP depends on the car and car-parts industry — and it is also their biggest manufacturing exporter. Negotiations are still ongoing.