The Congress of South African Trade Unions (COSATU) is deeply concerned following Premier Foods’ announcement of a plan to close the Tulbagh plant.

COSATU is worried that this move will have huge socio-economic implications not only for Premier Foods direct employees, as well as farm-based workers but also for the entire Tulbagh area. Were it to go ahead, the closure would affect nearly 300 permanent staff and 2 000 seasonal workers. Given South Africa’s alarming unemployment rate of 43.7%, we cannot afford to lose a single job.

The mooted closure would also pose a significant threat to the country’s industrial capacity. Linkages between agriculture and agro-processing must be carefully defined and not just driven by corporate greed to maximise profits as well as dividends for shareholders. Considering economic growth has been stagnant at 1% for more than a decade, now is the time for all stakeholders to partner in finding solutions that will benefit the entire country.

COSATU calls on the Competition Commission to investigate the proposed closure and its probable impact on competition policy in South Africa. The Competition Commission approved Premier’s merger with RFG Holdings in March this year with specific conditions in place. Now those conditions will be flouted by the plant closure.

The Federation further calls on Nedlac to urgently convene engagements that will include the Commission for Conciliation, Mediation and Arbitration, who must facilitate discussions to develop a plan to keep the plant operational.

COSATU calls for this crisis to be transformed into an opportunity to empower workers in the plant and in the supplying farms. The corporates that are in control of the processing capacity in SA must think beyond short-term profits; put efforts into growing the economy, transform old ownership patterns, and ensure that workers also benefit.

The Federation has in the past been involved in discussions with Langeberg in Ashton, who also contemplated closing the plant two years ago. COSATU proposes a similar process of engagement with all the role players to find a solution that keeps factory open while securing export markets. The Langeberg plant was able to achieve positive outcomes for all involved.

COSATU also calls on the Premier Foods shareholders including Mr Wiese, the food producers’ biggest shareholder, to oppose this rushed closure, as well as Mr Sihlobo, the Economist for Agri SA, to encourage the company to engage in good faith.

The engagements must be mindful of positioning the industry towards the future and identifying partnerships to achieve this. Due consideration must also be given to the workers and the affected communities. As part of building an industrial democracy, workers must also be regarded and also benefit from the developments.

COSATU urges the Western Cape Provincial Government under whose jurisdiction Tulbagh falls, to assist in preserving jobs.

COSATU will be joining workers and the community at a meeting to find solutions to keep the plant open on Sunday 2 August, at 4pm at the Tulbagh Community Hall.

Issued by COSATU Western Cape