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Toyota strike complicates South Africa's crisis

Thursday, Oct 04, 2012 - 01:58

Oct. 4 - Toyota says an illegal three-day strike at its South African manufacturing plant in Durban is over but with an ongong mining crisis the country's image as an investment oppotunity is taking a battering. Sonia Legg report.

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Relief for Toyota as striking South African workers agree to return to work. The illegal action halted production for three days. Leo Kok is a company spokesman. (SOUNDBITE) ( English) TOYOTA SPOKESPERSON LEO KOK SAYING: "In terms of the impact we are running at current capacity so we have to catch back on the lost production we all have to work overtime and will be discussed it with the our staff, and one has to consider that we 58 export clients, 58 countries that export our vehicles to, and it is very important to the image and for agreements we resolve and fill those orders as soon as possible." The strike set alarm bells ringing in a country still struggling to deal with widespread illegal action by miners. 75,000 platinum, gold and coal miners - a sixth of the industry's workforce in the country - continue to hold out for better pay and conditions. A truckers' strike too has been causing widespread disruption. And many fear there could be long term damage to South Africa's image. Laone Sharp is a labour analyst. (SOUNDBITE) ( English) LABOUR ANALYST LAONE SHARP SAYING: "This strike have terrible disruptive effect operation particularly for our automative manufactures who have very integrated supply chain, and they largely under export contracts to the rest of the world this kind of distribution put all those contracts at risk and certainly South Africa has become less favoured from employer and employee conflict, so companies who would be otherwise considering locating their operation to South Africa have second thoughts about doing so." A crisis may have been averted in Durban. But foreign investors will be looking closely at South Africa in the coming weeks. Mining companies may struggle to find alternative locations - but motor manufacturers may not . Sonia Legg, Reuters.

Toyota strike complicates South Africa's crisis

Thursday, Oct 04, 2012 - 01:58

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