S.Africa car workers strike, production stalls

By Gugulakhe Lourie

JOHANNESBURG (Reuters) - South African autoworkers seeking wage increases more than triple the inflation rate went on an indefinite strike on Wednesday, slamming the brakes on auto production in Africa's largest economy.

The powerful National Union of Metalworkers of South Africa (NUMSA), which represents 31,000 autoworkers, said it had rejected employers' offer of a 7 percent increase in the first year and a raise equal to consumer price inflation in the remaining two years.

The union is demanding a 15 percent wage increase, well above inflation, which was at 4.2 percent in July.

"The employers should come on board because we have been negotiating with them for a period of more than two months now. Nothing has come out concretely out of those negotiations," union spokesman Castro Ngobese said.

NUMSA has asked an industry group -- which represents seven companies including Toyota Motor Corp, Ford Motor, Volkswagen AG and General Motors Co -- for a one-year agreement guaranteeing a 15 percent wage rise.

The other companies are Nissan Motor, BMW and Daimler AG's Mercedes-Benz division.

The South African unit of German carmaker BMW said its local plant was closed as of Wednesday until the strike was over.

"There is no way we can build cars without workers. There is no contingency plan in place," said Guy Kilfoil, a BMW spokesman in South Africa, adding he hoped the strike will be resolved soon through the Automobile Manufacturers Employers Organisation, industry group.