The National Union of Metalworkers has declared a dispute - which could give rise to a strike - with Volkswagen SA after the manufacturer's decision to outsource one of its packing departments.

The National Union of Metalworkers has declared a dispute - which could give rise to a strike - with Volkswagen SA after the manufacturer's decision to outsource one of its packing departments.

Earlier this week the union accused VWSA of taking a unilateral decision to outsource the packing department of the parts distribution division, based in Gauteng, to a labour broker.

Dumisa Ntuli, Numsa's national spokesman, said the company had failed to resolve the dispute and that workers were considering strike action.

Speaking to CARtoday.com on Thursday, Ntuli said the union remained steadfast in its decision to continue lobbying for the workers' disputes to be resolved. He said a meeting would take place next week to gauge any progress and that perhaps a reasonable outcome could be reached. Ntuli said that if the dispute could not be resolved in next week's talks, strike action would be considered.

However, Bill Stephens, communication head at VWSA, maintained that the issue was being addressed through internal procedures, which were under review and discussion with Numsa.

Another issue highlighted by the union was the company's incentive scheme. Ntuli said workers wanted a share of the manufacturer’s profits once certain production targets were reached.

He said it was necessary for workers to be awarded performance-based incentives in order for them to be more effective, since the "current performance award system does not support the development of workers".

Original article from Car