VW workers express solidarity with South African counterparts

Aug 29, 2007, 15:52 GMT

Wolfsburg, Germany - Workers at German carmaker Volkswagen expressed solidarity with their South African counterparts on Wednesday in view of reports the concern is planning to shift production of its popular Golf model from South Africa to Germany.

A spokesman for the VW works council said it would only agree to the switch if a suitable replacement for the Golf production was found for the South African operation, which employs 6,600 people.

Earlier this month, the company was reported to be considering moving production of the right-hand drive Golf model for the Asia-Pacific region from Uitenhage to VW's main manufacturing plant at Wolfsburg.

Works Council chairman Bernd Osterloh said the employees' representatives in Germany were discussing the planned move with the company's board.

'No one needs to be worried that we will agree to a switch of production from South Africa to Germany if this will have negative consequences for the work force at Uitenhage,' Osterloh said.

VW is reported to be planning to move production mid-2008 after alternatives for the South African plant had been decided.

Industry sources said the background to the planned shift in production was a pledge made by the VW board to Germany's IG Metall trade union during wage negotiations earlier this year.

The company promised to introduce a new model to the Wolfsburg plant in exchange for an agreement by employees to work longer hours without additional pay.

Bringing the right-hand drive Golf to the German plant would mean an extra 40,000 to 45,000 vehicles per year. This will save 1,100 jobs faced with the axe because of improved productivity and changes related to the introduction of a new Golf model in late 2008.

Volkswagen expects to produce 480,000 vehicles at the Wolfsburg plant at the end of next year.

Last month, Volkswagen announced that pre-tax profits for the first six months quadrupled as it delivered a record 3.1 million vehicles to customers.

Relocating production from Uitenhage, near Port Elizabeth, would be a major blow for the South Africa plant, a third of whose production revolves around the right-hand drive Golf.

In addition to the Golf, the plant also produces smaller Polo models. Reports have said another Polo model might be produced in Uitenhage as compensation.

Volkswagen earlier transferred Golf assembly from its plant in Brussels to Germany, prompting major protests in Belgium after thousands of jobs were lost.

In the meantime, VW subsidiary Audi has taken over the Brussels plant and is soon to produce the new Audi A1 model there.