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JOHANNESBURG - Volkswagen's main South African plant is still at a standstill, the company says, leaving it unable to meet export orders as a strike by metal workers entered a second week.
The strike meant Volkswagen of South Africa was losing production at the rate of 500 cars each day.
New Zealand sources roughly 60 per cent of its Golf and Polo models from South Africa, but at significantly lower volumes than other markets.
Industry insiders believe that the strike may have an effect on the market here, but only if it is not resolved quickly.
"The component industry strike is absolutely unacceptable. It has brought our plant in Uitenhage to a standstill. We are unable to fulfil critical export orders to countries in the Asia Pacific region," Volkswagen of South Africa Managing Director David Powels said in a statement.
Volkswagen closed its Uitenhage plant last Thursday after members of the National Union of Metalworkers of South Africa began a strike in the motor and component sectors on September 12.
The company had sent most of its 4,000 workers home. The plant, near the eastern port city of Port Elizabeth, has a manufacturing capacity of 600 cars per day.
Powels said Volkswagen saw the strike in a serious light.
"If we lose our export business contracts we can take 36,000 cars out of our annual production plan for 2008 and beyond. This is approximately one third of our total production. If we lose this export business, we will then lose approximately 1,500 jobs at Volkswagen of South Africa".
Union officials have said more than 50,000 workers have downed tools since September 12 and operations in around 10,000 firms had been affected.
Car makers in South Africa employ about 39,000 workers.
South Africa has suffered a series of strikes over pay in the past three months in key industries including refineries and mines. There was also a four-week civil servants stoppage that crippled state hospitals and schools.
- REUTERS / NZ HERALD STAFF
