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Dec 16, 2008

Mercedes-Benz UK Employees may face Retrenchment

MECERDES-BENZ employees at the company‘s production plant in East London face a bleak Christmas as the company has announced production and cost cuts as well as possible retrenchments.

Company spokesman Annelise van der Laan said the luxury vehicle producer had to reduce operational costs and would start with an employee restructuring programme affecting salaried employees.

She could not say how many of the company‘s 3500 employees would be affected by the restructuring, and how exactly they would be affected.

“In the light of the grave situation in the global automotive market, and the rapidly deteriorating vehicle market worldwide, Mercedes-Benz South Africa has found it necessary to implement measures to ensure the long-term competitiveness of its East London manufacturing plant,” she said.

While MBSA has been more resilient than other manufacturers and, for the most part of this year, has managed to contain the impact of the global recession and the effects of a weakening rand, she said the company had not been immune to the growing decline in vehicle sales and had implemented various measures to stave off the negative effects of the economic slowdown.

The announcement comes at a time when car companies are releasing employees en masse, as well as the financial crisis and credit squeeze start taking their toll on the industry.

In September, Ford announced it would retrench 220 employees at its engine plant in Port Elizabeth and another 485 at Silverton in Pretoria.

By the end of this year General Motors SA would have retrenched about 1000 workers through a “voluntary separation programme”.

Company spokesman Gishma Abrahams was quoted as saying GMSA was restructuring into a “leaner, more efficient” firm.

Volkswagen South Africa has not announced any retrenchments, but the company also said it would not be able to export the 40000 vehicles it had set out to deliver early in the year “because of volatility in the globe”.

Until lately, local car makers have been capitalising on exports to make up for the decline in domestic sales, of which high interest rates and the new Credit Act are partly to blame.

But the global financial turmoil has lessened the demand for local stock.

In an effort to tighten their belts all the more and mitigate for the decline in sales, local VWSA, GMSA and Ford all introduced short-time.

Abrahams said short-time was likely to continue until manufacturing capacity was aligned to market demands.

Moreover, Ford and GMSA decided to extend their holiday shutdown by two weeks.

The latest National Association of Automobile Manufacturers figures showed that its members‘ new car sales last month were the worst in the past five years.

Sales of new light commercial vehicles, bakkies and minibuses at 11489 units last month reflected a decline of 3475 units or 23,2 per cent compared to the 14964 unit sales during the corresponding month last year.

The problems experienced in the automotive sector has filtered down to manufacturers and depressed the industry, which has also started laying off employees, cutting costs and reducing production.




Source : TheHerald
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2 comments:

John Morley said...

How to be SAFE in troubled times.

Fear of 'jobloss" is a universal element in the minds of millions of people worldwide, because of the basic system that creates the "employee" mindset.
Systematic programing over a long period of time, coupled with a manipultive education system ensures that it is permanently embedded. From being small chilren to adults,the GRADING/CHANELLING and SCREENING process systematically and progressively reduces the options of an individual to the point of needle point specialization. The result is large numbers of highly trined, but very limited individuals at the mercy of market forces which are beyond their own control.
The obligatory letter of EMPLOYEE undertaking not to engage in any other income generating activity whilst employed sets the stage for a life of exclusive servitude.
Routinely creating a mindset with the 'expected outcome' of a single dependancy income is the root cause of unlimited personal distress. Even though the risk of financial disaster isexceptionally high, it is sought after and welcomed year after year by the millions of new unsuspecting job seekers.
In economically difficult times the truth becomes self-evident.THE SYSTEM IS SERIOUSLY FLAWED to an extent that verges on immoral.
The FACT is..Everybody should have at least THREE INCOME SOURCES. It is folly to rely on a single dependency income from a souce outide your control. It is silly to expect an employer to put your interest before that of the Company. It is idealistic to believe that the Government will maintain your standard of living.
It is foolish to think it only happens to OTHER people.
Under the genrally accepted system MOST employed people are only three paychecks away from losing their homes.
Is it any wonder that in these troubled times, the fear of retrenchment tops the list of stressors.
The solution is not difficult. It does however require a change of mindset. It is NECESSARY to replace the EMPLOYEE mindset with an entepreneurial mindset .. even if you have to bend the rules. Bad rules that place you at risk to benefit somebody else NEED to be broken. For the sake of your family, your sanity and your future prosperity you must re-focus attention onto the real issues.
To get what YOU want you have to work with YOUR rules.
AT LEAST three sources of income are necessary for secutity. If your JOB FAILS its ok ..If you career fails its ok ...if your business fails its ok..because the other TWO will sustain you.
Make your additional income sources in diverse industries.
Leave the fear behind..YOU don't need it.
There are dozens of opportunities available to you every day ..if you look beyond the blinkered tunelled view of an employee.
Don't place your future in the hands of other people .. They will eventually abuse you. Don't place your families future in the realms of hope and prayer..They depend on YOU. Making small changes can give big results .. Learning the RIGHT skills is the key to financial security. No point learning how to mend shoes when everybody throws old shoes away.
Good industries to build income streams.. "Health" .. "Leisure" .. "Telecommunications" .. Become a "middle-man" .. get paid for talking and organizing .. Teach other people how to work and get paid for what they do. Look at leverage industries and marketing.
There are many avenues available to you..if you take off the blinkers.
Eventually you could find that retenchment was the best thing that ever happened to you.
Perhaps it just opened the door to a better life that you otherwise never would have found.
Reach out with hope..a world of opportunity is waiting..
John Morley ..info@pgn.co.za

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