by Dev_SACCAWU | Labour Market News
The closure of Premier Foods’ fruit processing plant in Tulbagh would remove almost half of the country’s canning capacity. Photo: Brent Meersman
Producers and labour warn that closing Tulbagh factory could leave hundreds of farmers without processing options before the November harvest
- About 200 producers of deciduous fruit face possible ruin because of the prospective closure of Premier Foods’ fruit processing plant in Tulbagh.
- Farmers say they need certainty about the factory’s closure before the November harvest.
- Premier Foods says its Tulbagh fruit processing plant is no longer economically viable.
- Producers warn its closure would remove half of South Africa’s fruit canning capacity.
- COSATU wants the retrenchment process halted while business rescue plans are explored and the Competition Commission investigates.
The prospective closure of Premier Foods’ fruit processing plant in Tulbagh has raised concerns well beyond the loss of factory jobs. Producers warn it could leave hundreds of them scrambling for alternatives just months before the next harvest.
Premier has begun a Section 189 consultation process on the proposed closure of Fruit Products Western Cape (FPWC). The company says the business is no longer economically sustainable because of rising production costs and declining global demand. About 90% of the factory’s canned fruit is exported.
The company responded to GroundUp with a statement saying it is working with farmers, government, the Competition Commission and other stakeholders to minimise the impact on employees, farmers and the Tulbagh community.
Producers face uncertainty
“Basically half the capacity for the industry will disappear,” said Jacques Jordaan, chief executive of the Canning Fruit Producers’ Association (CFPA).
According to Jordaan, South Africa has two main canning facilities: the FPWC plant in Tulbagh and Langeberg Foods in Ashton. Closing Tulbagh would remove almost half of the country’s canning capacity.
The announcement comes shortly before the deciduous fruit harvesting season begins in November and producers have already incurred most of their annual production costs – pruning, fertilising, irrigating and controlling pests.
Jordaan says between 200 and 220 producers supply the Tulbagh factory, many producing fruit varieties specifically bred for canning rather than the long-shelf-life varieties required for the fresh export market.
Without the canning facility, producers will have to remove orchards and invest in alternative crops and in new packhouses and distribution infrastructure.
The association says producers operate under rolling, long-term supply agreements that provide for a two-year notice period, allowing time to adapt if processing capacity changes.
In a letter to producers, dated 29 July, the company confirmed it would pay outstanding balancing payments (“agterskotte”) for fruit supplied during the 2025/26 season at the end of October, in accordance with existing contracts.
The letter included projected final payments for apricots, peaches and pears while explaining that Premier had decided to exit the soft-fruit canning industry after deteriorating international market conditions.
“It’s not an honour to honour a contract. They have received the fruit, worked the fruit, and now they pay for it,” Jordaan said. “At this stage there have been no commitments to the future seasons. Premier had commitments. It cannot just walk away from them.”
Industry under pressure
Premier attributed its decision to global oversupply, higher United States tariffs, uncertainty surrounding the African Growth and Opportunity Act (AGOA), exchange-rate pressures, and consolidation within the canned fruit industry. It points to the closure of one of the United States’ two major fruit canning operations earlier this year.
“Canning fruit internationally is under pressure,” Jordaan agreed. But, he argues, South Africa remains internationally recognised for the quality of its canned fruit and should be competing at the premium end of the market.
The announcement has also prompted questions about why the company would close a facility that had recently benefited from substantial investment.
According to Jordaan, more than R200-million has been invested in the Tulbagh operation over the past three years, making it difficult for producers to understand why Premier now believes the plant has no viable future.
“It feels like Premier just took over and now says they are going to exit,” he said.
Earlier this year, Premier completed its acquisition of the Rhodes Food Group, adding the Tulbagh processing operation to its portfolio. Last year, Langeberg Foods took over the former Tiger Brands canning factory in Ashton. Premier says it intends to work with Langeberg Foods to process future harvests rather than continuing operations in Tulbagh.
Jordaan says shifting all processing to Langeberg Foods cannot be achieved within a few months and would create significant commercial and financial risks.
The first round of Section 189 consultations took place on Thursday.
Job losses
COSATU Western Cape provincial secretary Malvern de Bruyn said organised labour refused to engage on retrenchments during the first meeting, insisting that discussions should focus on saving jobs instead.
“Why throw in the towel right at the beginning?” De Bruyn asked.
“Our position remains that we want a halt to the Section 189 process and look for a business rescue alternative … They were able to save the Ashton factory, why can’t they do the same here?”
He said COSATU was not directly involved in negotiations but played a role through its affiliate Southern African Clothing and Textile Workers’ Union (SACTWU).
“Over 150 farms will be affected by this decision, so thousands more workers will be indirectly affected and could also lose their jobs. The farm owners will also suffer because of this inhumane decision,” he said.
“We are hopeful because we’ve got 60 days in which to find an agreement.”
The Competition Commission is also scrutinising the proposed closure.
De Bruyn said the Section 189 consultation process should be suspended while the Commission investigates whether the proposed retrenchments comply with public-interest conditions attached to Premier’s acquisition of Rhodes Food Group, including undertakings relating to employment. He said similar retrenchments following mergers had occurred elsewhere, and he cited PepsiCo’s acquisition of Pioneer Foods.
In the coming days, COSATU will consult with its national leadership on whether to seek an interdict to halt the retrenchment process.
The Commission did not respond to GroundUp’s questions.
The next round of Section 189 consultations is scheduled for 26 August. Labour must submit questions to the company by 14 August, with the company expected to respond by 21 August.
For producers, however, time is running out. With the next harvest only months away, producers say they need certainty about who will process their fruit, whether existing contracts will be honoured beyond this season, and how South Africa’s remaining canning capacity will absorb volumes previously handled by Tulbagh.
Source: https://groundup.org.za/article/premier-foods-closure-plan-threatens-future-of-south-africas-fruit-canning-industry/
by Dev_SACCAWU | Labour Market News
COSATU’s Parliamentary coordinator Matthew Parks. Picture: X/Radio702
The union has commanded a bold and decisive action to tackle the country’s unemployment crisis.
The Congress of South African Trade Unions (COSATU) has sharply criticised South Africa’s worsening unemployment.
COSATU has dubbed the latest Statistics South Africa (Stats SA)’s Quarterly Labour Force Survey (QLFS) for the second quarter, showing an increase to 33.6% in the second quarter, a “ticking time bomb” and a national emergency.
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The union has commanded a bold and decisive action to tackle the country’s unemployment crisis.
“This extent of this crisis requires a bold and aggressive stimulus package to kickstart the economy rebuild, public and municipal services, make capital affordable and accessible for SMEs [small and medium-sized enterprises] and industrial sectors and extend relief and expand public employment programmes,” said COSATU’s parliamentary coordinator, Matthews Parks.
Source: https://www.ewn.co.za/2026/08/12/cosatu-says-sas-worsening-unemployment-crisis-is-a-ticking-time-bomb
by Dev_SACCAWU | Labour Market News
MMABATHO – The Democratic Nursing Organisation of South Africa (DENOSA) in North West warmly welcomes yesterday’s ruling by the Johannesburg Labour Court on the review application by Department of Health in North West of the Public Health Social Development Bargaining Council (PHSDSBC) arbitration award to DENOSA to have an assistant nurse paid 8 percent Rural Allowance, backdated to April 2018 when she commenced her employment for government.
Upholding the previous ruling by the PHSDSBC Arbitration, that the nurse must be paid Rural Allowance retrospectively, proves that DENOSA has been right all along that PHSDSBC Resolution 2 of 2004 has been implemented inadequately as it has been excluding Enrolled Nurses (ENs) and Enrolled Nursing Assistants (ENAs), when in fact the Resolution includes them.
DENOSA took this matter on behalf of the nurse in December 2020. The nurse works in one of the rural healthcare facilities in the North West, and has not been receiving Rural Allowance since she commenced her employment, leaving her 8 percent poorer in terms of salary every month.
At the centre of the matter is the wrong interpretation of PHSDSBC Resolution 2 of 2004 by the Department of Health in North West, and by extension other health departments in the country. The Department interprets the Resolution as saying only a category “Professional Nurse” should be paid the 8 percent Rural Allowance if they are working in a clinical area in areas that are designated as rural areas, whereas this term in the Resolution is used to describe a nurse that is registered at the South African Nursing Council, the country’s regulatory authority for nursing, not to a nursing rank.
The Resolution is clear that those who are excluded from the Resolution are student nurses.
Since 2004 when the agreement was signed in the public sector, the Enrolled Nurses and Enrolled Nursing Assistants have been excluded from getting Rural Allowance. The ruling by the court will have far-reaching effects as thousands of other Enrolled Nurses and Enrolled Nursing Assistants are in the same quagmire countrywide.
DENOSA will enforce the implementation of this ruling by the Department of Health so that justice and fairness are served on the affected nurses.
DENOSA is happy that, finally, justice has been served.
End.
Issued by DENOSA in North West.
For more information, contact:
Reuben Molete, DENOSA Provincial Secretary.
Mobile: 071 645 6336.
Mzwakhe Seleke, DENOSA Provincial Chairperson.
Mobile: 071 643 6240.
Source: https://cosatu.org.za/denosa-nw-welcomes-the-ruling-by-labour-court-on-the-payment-of-8-rural-allowance-to-assistant-nurses-in-rural-facilities/
by Dev_SACCAWU | Labour Market News
The Congress of South African Trade Unions (COSATU) is deeply concerned that South Africa’s second largest provincial economy will grind to a halt if 20 commuter bus companies stop operating next week.
Major commuter bus companies operating in Kwa-Zulu Natal including South Coast Bus Service, Metrow Bus Service and Combined Transport Services, say they will be forced to halt operations from next week if the KZN Department of Transport does not pay subsidies as per signed contracts. In a letter to the South African Road Passenger Bargaining Council (SARPBAC), the bus companies state that they will not be able to ferry thousands of passengers across the province to work, school, university, hospital or any other destination if their subsidies remain unpaid.
The KZN DoT is in breach of contract as it has not paid subsidies since April this year, the passenger bus companies maintain. Subsidies are meant to be paid monthly. The companies say have had to dig deep into their reserves to ensure services to commuters across KZN were not disrupted in the past few months. Given the fuel price increases since the war in the Middle East started, plus the latest diesel price hike, the bus companies say their reserves are now depleted. Worse still financial institutions are unwilling to grant further extensions on their credit lines.
On contacting the National Department of Transport, the passenger bus bargaining council General Secretary, Gary Wilson, was informed that the allocation for subsidies was paid over to the KZN DoT. The question then arises, why have funds not been transferred to the bus companies?
Were bus companies to stop operating next week, commuters would have no transport to get to work or school, the provincial economy would be adversely impacted, and the livelihoods of more than 1 000 workers would be threatened, along with that of their families. Workers’ salaries were also paid from reserves in recent months. If the subsidies are not paid within this week, the consequences will be dire.
COSATU calls on the National Department of Transport as well as the KZN Provincial Government to intervene to ensure subsidies are paid within this week to avoid disruptions that could ultimately cost the economy multiples more, given volatile nature of the province.
The Federation calls on all stakeholders to do all in their power to avoid this impending disaster because it will affect the working class and the poor the worst.
Issued by COSATU
Zanele Sabela (COSATU Spokesperson)
Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za
Source: https://cosatu.org.za/cosatu-concerned-non-payment-of-subsidies-could-spell-disaster-for-kzn-economy/
by Dev_SACCAWU | Labour Market News
The Congress of South African Trade Unions (COSATU) reaffirms its unwavering solidarity with the workers, farmers and the broader Tulbagh community in their united campaign to stop the proposed closure of the Rhodes processing plant.
Premier Foods announced the plan to close the Rhodes processing plant last week, following the merger with Rhodes Food Group Holdings in March this year. The merger was sanctioned by the Competition Commission with conditions attached, including Premier’s undertaking of no retrenchments for three years.
COSATU extends its appreciation to the community of Tulbagh for inviting the Federation to participate in the public meeting and prayer service on Sunday. The overwhelming unity displayed by workers, farmers and residents demonstrates that the future of the Rhodes processing plant is not merely a workplace issue but a matter affecting the survival of the entire local economy.
The closure of the processing plant would destroy an estimated 80 000 jobs in the value chain, weaken agricultural production and devastate businesses throughout Tulbagh and surrounding areas. Retailers, suppliers, transport operators and many other enterprises depend on the continued operation of the plant. This reckless decision threatens the economic future of the entire region.
COSATU rejects any attempt by Premier Foods to sacrifice workers and communities in pursuit of short-term profits for shareholders. The people of Tulbagh helped build this industry over generations and deserve a meaningful voice in determining its future.
The Federation supports the following immediate demands:
- The Rhodes processing plant must remain operational.
- There must be no retrenchments and no removal of machinery from the plant.
- The current Section 189 retrenchment process must be suspended until the Competition Commission determines whether the proposed closure violates the commitments made when Premier acquired Rhodes, including undertakings relating to employment protection.
- Premier must justify its claim that South Africa requires only one processing plant, as this assertion does not make sense.
- The company must disclose the financial and operational information underpinning its decision to close the Tulbagh plant.
- A comprehensive socio-economic impact assessment must be conducted to determine the devastating consequences that closure would have on workers, farmers, businesses and the wider Tulbagh community.
COSATU is equally concerned that the company appears to be ignoring alternative market opportunities by insisting the decision to close was prompted the USA agreement, but they say nothing of the offer by China to take on SA exports and how this can benefit the company. South Africa’s canning industry requires growth and innovation, not contraction.
The Federation believes the future of the canning industry cannot be determined through unilateral corporate decisions. A national master plan for the industry must be developed through engagement between government, organised labour, producers, processors and affected communities.
As part of the campaign to save the plant, COSATU, together with its affiliate Southern African Clothing and Textile Workers’ Union (SACTWU) and other recognised trade unions, will continue to participate in negotiations and legal processes, particularly those involving the Competition Commission. The Federation also welcomes the intervention made by local farmers and will support every lawful effort to prevent the closure.
COSATU will further engage Premier’s shareholders, the Department of Trade, Industry and Competition, the Office of the Western Cape Premier and all relevant stakeholders to secure a sustainable solution that protects jobs and preserves industrial capacity in Tulbagh.
The Federation also calls on companies throughout the agricultural value chain to oppose decisions that undermine local production and threaten thousands of livelihoods.
Should Premier insist on exiting the operation, COSATU believes the facility should instead be sold as a going concern to a consortium capable of preserving production, protecting jobs and advancing worker ownership. Government development finance should be explored to support such an initiative, while workers must have an equitable stake in the future ownership of the enterprise.
The unity demonstrated by workers, farmers and the community sends a powerful message that Tulbagh will not stand by while corporate greed destroys its economic future.
COSATU pledges to stand solidly with the workers and the people of Tulbagh until this closure is defeated and the Rhodes processing plant remains a thriving contributor to the local economy.
Issued by COSATU Western Cape
Malvern De Bruyn (Provincial Secretary) 060 977 9027
Tony Ehrenreich (Deputy Parliamentary Coordinator) 082 773 3194
Source: https://cosatu.org.za/cosatu-stands-with-workers-and-the-tulbagh-community-to-defend-rhodes-processing-plant/
