The strike by about 300 members of the National Union of Metalworkers of South Africa (Numsa) at the Hisense manufacturing plant in Atlantis north of Cape Town is ongoing.
According to Hisense, a Chinese multinational major appliance and electronics manufacturer, operations at the facility have been suspended until further notice. In a statement on Monday, it said management is working with its legal team to ensure it follows due process.
"Hisense would like to ensure that delivery of our product would remain uninterrupted. Hisense SA would like to reassure its employees, media and customers that we are focusing to resolve this matter and will issue an update as soon as the matter is resolved," it said in a statement.
According to Numsa, a key reason for the strike is that a demand for a 15% increase across the board for all workers is not being met.
Production stops as Numsa strike hits Hisense plant near Cape Town
The R350m state-of-the-art consumer electronics and home appliance manufacturing facility in Atlantis was launched in June 2013. It is capable of producing 400 000 refrigerators and televisions a year.
Alderman James Vos, the City of Cape Town's Mayoral Committee Member for Economic Opportunities and Asset Management, and Executive Mayor Alderman Dan Plato, recently hosted a delegation from China.
The possibility of increasing trade by securing Chinese investment in Cape Town to boost employment was discussed, among other issues.
Vos said in a recent statement that Enterprise and Investment Department played a significant part in assisting Hisense to "set up shop in the Cape". He added that since then, the company has expanded and exported products made locally to the rest of Africa.