Page 5 - KZN Business Sense - Vol.6 No.1
P. 5

RELOCATION TO DURBAN



               NE of the world’s top   the world. “The LG Electronics   economic hub in the country. In
               electronics company, LG   plant will assist the Municipality   the move to this location, we do
        OElectronics, has relocated   intensify its efforts to create   not only improve efficiencies, but
        its plant from Johannesburg to   a conducive environment for   are better positioned to further
        Durban, much to the excitement   business. We are privileged in   growth and possible future
        of job seekers. On 24 January   Durban as we are strategically   expansion,” he said.
        the company unveiled its      positioned for distribution.
        new home for manufacturing    Besides being the largest and   He added that the Durban
        and distribution at Cornubia   busiest port in the sub-Saharan   factory will not only serve as
        Industrial Park.              region, we also have easy access to   a manufacturing point for
                                      neighbouring countries,” he said.   the local market but also for
        The move was welcomed by      “We are extremely proud of the   export markets to neighbouring   POWER HUNGRY UNIONS
        local and provincial leadership   Invest Durban team and others   countries such as Mauritius,
        in attendance who said the    who have partnered with LG to   Mozambique and Reunion.
        relocation would be beneficial to   deliver this Plant opening and                                    Patrick Deale, Labour   The LC was referring to the five
                                                                     “We’re positive about the future
        both eThekwini and LG. In his   Launch today.”              in South Africa and opportunities          lawyer & mediator,     recognised unions at the Hospital -
        address, KwaZulu-Natal Premier                              within the wider SADEC region                               NEHAWU, NUPSAW, DENOSA,
        Sihle Zikalala said: “This is a    The ceremony was attended by                                               ow does   HOSPERSA and the PSA. Their
        progressive decision as this factory  LG South Africa President Deuk   and I know that as a subsidiary,       the       unlawful activities included
        has the potential to contribute   Soo Ahn, LG MEA President   LG South Africa is geared for            HLabour          unprotected strikes; refusal to take
                                                                    growth. We would like to partner
                                                                                                                                blood samples, saying this was
        tremendously in growing the City   James Lee, the Ambassador from   with you as government and the   Court deal with    not part of their job description;
        and province’s economy.       the Embassy of the Republic                                              unions who       an illegal picket causing damage
                                      of Korea Jong Dae Park, senior   local chamber of commerce to              ignore the     to property and threatening
          “We want to thank LG        government officials and      grow with us, to help you grow the            rules of
        Electronics for locating      dignitaries from LG’s MEA     provincial and national economy               orderly labour   behaviour; blocking access to
        themselves in KwaZulu-Natal.   regional headquarters.       and build a profitable industry. I            relations?    Walsh’s office and injuring him; a
        This will grow opportunities                                offer you my support to achieve                             NEHAWU representative stating
                                                                                                                                that Walsh must “leave the hospital
        for jobs but this will also grow   Ambassador Jong Dae Park,   this goal,” said Lee.                       We have a    in a bakkie – they will make the
        opportunities for those who are in   said LG Electronics had decided                      problem. The problem is that the   hospital ungovernable” and “set the
        the value chain. We also commit   to open a factory in Durban   LG South Africa President   rules of engagement are too often   administration building alight”;
        to ensuring that the companies   as it had all the factors to   Deuk Soo Ahn said the factory   simply abandoned when some   entering the hospital in July 2016
                                                                                                  unions don’t get their way. And
                                                                    is a facility, due to its location,
        that are based in the province   support the expansion of the   strategically positions the   anarchy quickly follows. A tragic   armed with sticks and threatening
        are assisted to grow because we   business because of its strategic                       example is what happened at Fort   employees  that their houses would
        have to work with them to ensure   location and favourable weather   company to grow and extend its   England Hospital, a state hospital   be burnt down if they did not
        that they enlarge their market.   conditions. “Also because of   range of products and services in   in Machado (Grahamstown). It’s   participate in the strike.
                                                                    South Africa.
        And we have to assist them to get   the support by the Honourable                         not a typical hospital. It’s a state
        through the African market as a   Premier of the Province and all   “We’ve enjoyed great support   psychiatric hospital which takes   The LC was highly critical of
        whole and be able to service the   the local leadership and because   from local government in setting   care of people with serious mental   the unions’ conduct saying the
        whole of the continent of Africa.   this is an important province.   up our Durban operations,   health problems. And its patients   following:
        We quite value the opening of this   So we believe that this will really   including the dti (Department of   aren’t typical either – they include   [96] In these circumstances, when
        manufacturing plant because it   help LG grow its businesses and   Trade and Industry), eThekwini   the country’s most difficult and   an employer allows itself to be held
        adds to job creation.”        also export to other African   Municipality and Invest Durban.   dangerous state patients in its   hostage to a concerted campaign
                                      countries. And I think there is   There are so many reasons this   maximum security unit. Think   of violence and intimidation
          The factory has a staff     still more to come and this is just  makes business sense for us and   about this…        conducted by power hungry Union
        compliment of 112 people,     the beginning,” he said.                                                                  officials, the basis for any semblance
        including employees from                                    we look forward to the benefits   The employees and their unions   of a system of industrial relations is
                                                                    this repositioning will yield,”
        Johannesburg and new local     LG MEA President James Lee   commented Ahn.                were unhappy about a new CEO   compromised.
        recruits. Steven Bosch, LG    said moving the LG factory and                              named Walsh who was appointed   In the resultant anarchy, for
        Electronics South Africa Brand   distribution centre to Cornubia   LG Electronics, one of the   in 2013. His task was to fix the   those citizens who are reliant
        Marketing Manager said they   was one example of how LG South  leading brands in Information   hospital after it had fallen into an   on the services provided by the
        intend on doubling the number of   Africa was implementing change   Display and Commercial   extreme state of disorder following   Department of Health, life will
        employees in a few years.     for growth.                   TV solutions and which has    years of mismanagement and    literally and inevitably run the risk
                                                                                                  neglect. The unions wanted him
                                                                    operated in the country for 23   gone because it was their turf. As   of being reduced to the Hobbesian
        Speaking on behalf of eThekwini   “KwaZulu-Natal, through the   years, currently employs around   the Labour Court (LC) described–    description of life without State
        Mayor Councillor Mxolisi      Dube TradePort, is an attractive   500 people across its business                         structures and controls “solitary,
        Kaunda, eThekwini Chief Whip   destination for export-oriented   subsections.             “[87] The facts disclose a   poor, nasty, brutish and short”.
        Councillor Sibongiseni Mkhize   technology production such as                             relentless campaign to oust the   So it was for the hospital’s patients,
        said LG Electronics is one of   our innovative products. We                               applicant [Walsh], a campaign   to whom the constitutional right of
                                                                                                  that commenced almost as soon as
        the most recognisable brands in   also see Durban as an emerging   W: www.invest.durban   the applicant assumed office. The   access to health care is owed, and
                                                                                                  applicant was hounded out of his   who have suffered as a consequence
                                                                                                                                of the conduct of the Unions and
                                                                                                  position on account of the unlawful   their officials and members.”
                                                                                                  conduct of union officials and
                                                                                                  members. He has been subjected to a   The LC’s response to this anarchy
                                                                                                  campaign of vilification, harassment,  by unions is clear: it will not be
                                                                                                  intimidation and assault.”    tolerated and unions can expect no
                                                                                                                                sympathy from the courts.
                                                                                                   To make matters worse, the
                                                                                                  unions’ complaint was completely   TIP:  If it’s not too late for a new
                                                                                                  illegitimate. The LC observed –   year’s resolution: the resolution
                                                                                                                                should be to put a stop to this
                                                                                                   “Two separate independent    madness. We live in a fractured
                                                                                                  investigations concluded there   and fragile society with an even
                                                                                                  was no substance to claims by   more fragile economy. There can
                                                                                                  employees and unions that Walsh   be no winners without respect for
                                                                                                  was a “dictator”. An advocate   the rules or for each other. Nor can
                                                                                                  during March 2016 found no fault   there willing investors to create the
                                                                                                  with Mr Walsh’s management style   jobs we so desperately need. 
                                                                                                  and said there was no merit in the
                                                                                                  accusation that management had
                                                                                                  failed to consult with the Unions on   Source: Worklaw Newsflash November 2019

                                                                                                  relevant issues. Following the report   Offices in KZN and Johannesburg
                                                                                                  there was a repeat of the violent,   C: 083 375 8771
                                                                                                  unlawful action by Union officials   E: patrick@deale.co.za
        KwaZulu-Natal Premier Sihle Zikalala speaking at the LG Electronics relocation ceremony.
                                                                                                  and certain employees.”       W: www.deale.co.za



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