Detroit, MI, United States (4E) – General Motors has suspended production at its main South African plant as the strike by the country’s biggest union intensifies.
The U.S. car giant announced Friday that it halted production at its main assembly plant located on South Africa’s eastern coast as a strike that started this week denied them access to component parts for its cars.
The industrial action is targeted at the country’s engineering and steel sector, which produces products for industries including telecommunications, automotives and mines.
Around 220,000 members of the National Union of Metalworkers of South Africa (NUMSA) went on strike on Tuesday across the country, demanding a 12 percent to 15 percent wage hike from their employers.
On Thursday, the latest round of negotiations broke down after the union rejected a revised offer of 10 percent from the negotiating body that represents the Steel and Engineering Industries Federation of Southern Africa.
GM, which is not directly affected by workers’ strike, is concerned that if the current strike lasts more than a few weeks, it will not be able to stockpile automobiles like SUVs and small trucks.