South African workers' strike force automakers to suspend operations

Automotive plants across South Africa were shuttered Wednesday as workers joined tens of thousands of strikers protesting against rising electricity prices.

The one-day national strike, called by the Congress of South African Trade Unions (COSATU), is calling for a 27.5 per cent power price hike this year to be rolled back and guarantees jobs won't be cut due to power shortages.

South Africa's electricity crisis, which has resulted in intermittent power cuts as provider Eskom struggles to meet demand, has forced shutdowns in the mining sector in recent months, leading to warnings that thousands of jobs will be lost.

The price of electricity has soared because of the shortages, adding to the rising cost of living in Africa's richest nation. COSATU has already held three provincial strikes and is pledging to continue its protests until the government takes action to control inflation that has topped 11 per cent.

Volkswagen AG's South African unit was forced to suspend scheduled production for the day at its main Uitenhage plant in the south, which normally produced between 300 and 350 vehicles daily, said spokesman Bill Stephens.

He said the company would have to make up production of vehicles destined for export. The company expects to produce about 40,000 vehicles this year, of which 40 per cent would be exported.