Metalworkers emerge victorious as company fails

The National Union of Metalworkers of South Africa (Numsa) said retrenched workers would get millions of rands in dividends from the liquidation of German-owned ATS Alloy Wheels South Africa.

Numsa national spokesman Mziwakhe Hlangani said 489 retrenched employees have already received R6.4 million with R2.9 million still to be distributed.

The Johannesburg High Court had delayed the granting of the claim in August last year to ensure that procedures could be followed to gain dividends for the retrenched workers. Numsa would also file a claim for an additional R9 million for the retrenched workers.

Numsa had opposed ATS' claims for bankruptcy on grounds that financial performances, presented in 2007, showed the company to be in a "state of good health".

Following industrial labour protest actions in South Africa in 2007, ATS could no longer get financial assistance from its mother company, ATS Beteiligungs in Germany. The application for liquidation was brought by the German company's senior management and directors.

Numsa's claim on behalf of the metalworkers was informed by what they saw as deliberate inaction by the company's management board to predict the oncoming difficulties and adopt remedial measures. - Sapa