Review information for the south african motor industry

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Reference no: EM132255843

Review information for The South African Motor Industry

The South African motor industry originally emerged through the assembly of knock-down kits of parts from abroad. Over the years, these developed into fully fledged manufacturers. This was largely due to the active industrial policies of the apartheid government (in power from 1948 to 1994), which aggressively promoted import substitution. Under apartheid, racial discrimination in the communities was mirrored by racial Fordism: blacks were largely condemned to poorly paid unskilled work. This led to many industries relying on cheap labor to solve systemically imposed inefficiencies.

In the 1970s, a wave of unionization of blacks took place, eclipsing the older, white- dominated trade unions. By the early 1980s, the new (“independent”) unions became increasingly outspoken in opposing the apartheid order. Mass resistance in communities was paralleled by an upsurge in strike action. In the Mercedes-Benz plant in East London, the resistance became so intense that large areas of the factory were rendered no-go areas for management. Finally a grouping of workers occupied the plant, damaging inventories and machinery.

The close of the apartheid era alleviated much of the underlying tension; at the same time, managers began to forge cooperative deals with unions. At Mercedes-Benz, these included very much better pay and working conditions, new opportunities for up-skilling and career advancement and a range of participative mechanisms, giving workers a real say in the process of production. Today, the plant is one of the most productive car plants in the world, and its products have the fewest defects of any Mercedes-Benz plant. While previously the plant was marginal, and by the late 1980s under threat of closure, today it is an integral part of the Mercedes-Benz worldwide production network.) case 3.1 then answer the following questions in accordance with the criteria below (Write 150 word minimum for each question, points will be deducted if each question does not meet the minimum 150-word required for each question):

1. Summarize the study

2. What lessons does the Mercedes-Benz East London plant hold for HR managers worldwide?

3. Is the experience of Mercedes-Benz in East London relevant to other industries.

4. If yes, please explain. If not, why not, please explain.

Reference no: EM132255843

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