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

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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