SAFTU slams ‘warehouse economy’ as BAT shuts local production

By Simon Nare

The South African Federation of Trade Unions (SAFTU) has warned that the country is being reduced to what it terms a “warehouse economy”, as multinational companies move production offshore while retaining distribution networks and selling imported goods locally.

The federation raised concern following British American Tobacco South Africa’s (BATSA) announcement that it plans to close its production plant in Heidelberg, east of Johannesburg, while continuing to sell its products in the country.

SAFTU said the decision would deal a severe blow to workers, with jobs lost at a time of deepening factory closures, retrenchments and deindustrialisation.

The union federation said BATSA’s move adds to a growing list of international companies — including tyre manufacturers Goodyear and Bridgestone, as well as firms in the clothing, textiles, electronics and manufacturing sectors — that have exited local production but maintained sales operations in South Africa.

Speaking alongside its affiliate, the