BMW branch in Newtown, BMW has decided to close its Joburg City branch. Picture: Itumeleng English / Independent Newspapers
The Legacy Motor Group (LMG), operator of BMW Joburg City, has denied claims about alleged failure to inform employees about its impending closure as reported on social media.
In response to reports shared on social media concerning the labour relations procedure, the company confirmed its closure date of February 29, 2024, and underlined that all actions were strictly in conformity with Section 189 of the Labour Relations Act.
According to assertions made prior to the firm’s clarification, the severance package offered equivalent to one month’s wage for the month of February, with the assumption that employees would report for duty throughout the period.
LMG said employees were given written notification of their termination dates and severance packages, which were calculated in accordance with the Motor Industry Bargaining Council’s (MIBCO) main agreement.
“A 48-hour notice for consultation was issued to all employees, and the motor industry trade union on Wednesday, January 31, 2024, has made the difficult decision to close the dealership. This decision, made in consultation with BMW Group South Africa, follows thorough reflection and consideration, taking into account the evolving market dynamics and operational challenges at this location that have hindered profitable operations.”
Following this, the company said it held a consultation led by the group labour relations specialist, involving all staff and a motor industry trade union representative.
It is explained that the session discussed the dealership’s financial difficulties, which all staff had been made aware for months, and subsequently led to the conclusion that LMG could not sustain this operation.
‘’Whilst we understand that this process is daunting for our employees, a fair and correct company procedure was followed in consultation with the motor industry trade union. We are Metre (LMO) committed to supporting our employees during this transition and helping them navigate this.’’
After The Star contacted the BMW offices, it was verified that staff members were made aware of the company’s upcoming closure.
The Star
anita.nkonki@inl.co.za
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