Cosatu slams ‘reckless decision’ as Premier Foods closes Western Cape fruit plant

The Congress of South African Trade Unions (Cosatu) has rallied behind Premier Foods workers facing retrenchment as the company moves to shut down its Fruits Products Western Cape (FPWC) plant based in Tulbagh. Premier Foods acquired Rhodes Food Group Holdings in March this year. The deal was approved by the Competition Commission under conditions that included there should not be retrenchments for at least three years after the takeover.

The closure of the plant could be a direct violation of this condition. It is understood that the company is closing the processing plant due to declining global demand, pricing pressure and rising input costs. Premier Foods also cited the United States’ tariffs imposed last year as a contributing factor.

The FPWC processes apricots, peaches and pears, and about 90% of the factory’s canned fruit production is exported, leaving the business heavily exposed to weakening international demand. The decision to shut down the plant will affect approximately 3 000 permanent and seasonal jobs. “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,” said the union.

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“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.” The union said it “reject any attempt by Premier Foods to sacrifice workers and communities in pursuit of short-term profits for shareholders”. The following are the immediate demands supported by Cosatu: Competition Commission spokesperson Siya Makunga confirmed toBusiness Timesthat the watchdog is looking into the decision by Premier Foods to close the FPWC plant.

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