The strike by NUMSA’s more than 200 000 members has affected vehicle manufacturers in South Africa with both Ford and Toyota saying that production in the country has taken a hit over the past week.
Ford suspended production at one of its plant in South Africa, while Toyota plans to halt production at two Durban-based plants from Tuesday.
Both companies face a shortage of components from suppliers.
The unresolved metalworkers strike has taken a turn into irresolute territory as NUMSA rejected wage offers by Seifsa, with the metals federation withdrawing its wage offer in turn.
Credit rating risk
South Africa’s credit rating was downgraded last month as a result of the platinum strike that resulted in weak growth and a current account deficit in the country.
South Africa’s economy shrank 0.6 per cent during the first three months of the year.
NUMSA members accounting for more than 200 000 metalworkers and engineers downed tools just as the strike ended in late June.
Interruption in supply
The construction industry and the manufacturing industry reported an interruption in supply over key components in the sector and a reduction in ouput as a result.
This could mean that the South African economy could face a further contraction in H2 2014.
The South African auto industry is a crucial sector for manufacturing and export earnings, with about 276000 vehicles exported to Europe, Asia, the US and Africa from the country last year.