The Congress of South African Trade Unions (COSATU) in the Western Cape said the livelihoods of nearly 6,000 workers are at risk due to the proposed closure of the Premier Foods plant in Tulbagh.
The company has confirmed it has entered retrenchment consultations with affected workers, saying the Fruit Products Western Cape plant is no longer economically sustainable.
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Meanwhile, COSATU claims Premier Foods CEO Kobus Gertenbach is due for a R17 million bonus payout.
In a statement, COSATU said the proposed closure of Premier Foods’ Fruit Products Western Cape plant in Tulbagh threatens the livelihoods of about 5,700 workers and producers.
It also claims that Premier Foods has indicated that it will not honour the existing three-year supply contracts with producers, which, in turn, leaves them stranded with fruit for the upcoming season.
COSATU has also condemned reports that Gertenbach is set to receive a multi-million-rand bonus.
The union federation’s Malvern de Bruyn said the situation prioritises executive wealth over the economic survival of the Tulbagh community.
“It is an absolute disgrace that Premier Foods can reward its CEO with a R17.4 million bonus while simultaneously throwing thousands of workers and their families on the street.”
COSATU said it will oppose the decision, warning that it may be forced to organise mass protests and seek an urgent court interdict to halt the process.
Premier Foods has not commented on reports of the alleged bonus but said it remains hopeful of a positive outcome for the broader value chain, despite the industry’s ongoing challenges.
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Camray Clarke
www.ewn.co.za