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