The proposed closure of Premier Group’s Tulbagh canning factory could disrupt an agricultural export supply chain supporting more than 200 fruit producers, transport operators and other service providers, according to trade unions opposing the move.
The unions said about 90% of the factory’s canned fruit output is exported and 424 factory jobs are at risk.
Premier Group has attributed its decision to begin a Section 189 retrenchment process at Fruit Products Western Cape to global oversupply, higher United States tariffs, uncertainty surrounding the African Growth and Opportunity Act, exchange rate pressures and consolidation in the canned fruit industry.
The Congress of South African Trade Unions (COSATU) and other signatories have urged Premier Group to suspend the retrenchment consultations for 12-24 months while alternatives to closure are investigated.
COSATU’s Western Cape Provincial Secretary Malvern de Bruyn told Freight News, ahead of a scheduled meeting with Premier Group on August 26, the union intends to discuss the proposals in an open letter sent to the company.
The letter was signed by COSATU and its affiliate unions, Solidarity, the National Union for All Sectors and the Canning Fruit Producers’ Association. It was addressed to Premier Group Chief Executive Kobus Gertenbach, Chairperson Iaan van Heerden and shareholders, including Christo Wiese, Brait and Allan Gray.
The signatories warned that the closure would have a ripple effect across the supply chain and affect communities including Tulbagh, Saron, Gouda, Wolseley, Ceres and Hermon.
“We write for the benefit of their families and the farmers, contractors, transport operators, service providers, local businesses and thousands of workers and other people whose livelihoods depend on the economic ecosystem this factory sustains.”
They argued that the 60-day period provided for the Section 189 consultation process is insufficient to consider alternatives to closure.
“A two-year pause is not an unreasonable request in the circumstances. It would give all stakeholders real time and space, free of the threat of imminent closure, to properly determine how the factory can be saved, sold, recapitalised, repurposed or operated under a different business model.”
The signatories also referred to the Competition Tribunal’s approval of Premier Group’s merger with RFG in March 2026, which was subject to conditions concerning merger-related retrenchments.
They claimed Premier Group has not yet proved to the Competition Commission that the proposed retrenchments are unrelated to the merger.
“On the facts as they stand, Premier should not be proceeding with this process at all,” they said.
The unions argued that signalling the proposed closure before obtaining Competition Commission approval risks undermining the factory’s commercial prospects and making it more difficult to save.
According to the letter, approximately 200 to 220 fruit producers supplying the facility could be affected. The producers could be forced to remove orchards, find alternative crops and establish new production, packing and distribution arrangements, the signatories said.
“For many, your closure of the factory threatens the viability of their businesses and the livelihoods of everyone they employ. It will strike farms, transporters, contractors, input suppliers, machinery suppliers, engineering firms, service providers, retailers and other businesses across Tulbagh and all their employees and surrounding communities.”
The signatories warned that the loss of the factory’s industrial capacity could be permanent as equipment could be sold and workers’ skills and institutional knowledge lost.
Orchards could be removed, they added and noted that deciduous fruit trees typically have a lifespan of between 20 and 30 years.
The signatories called for potential investors and producers to be given time to explore ownership or investment options. They also urged government to investigate possible trade, tariff and financial support measures.
Premier Group said, on Tuesday, August 25, that it has begun consultations with affected employees and recognised representatives regarding the proposed controlled closure of the business.
“The process is currently still underway and Premier is continuing to engage with the relevant parties as part of this process. Given that these consultations have not yet concluded, it would be premature to comment on the outcome or provide any further detail at this stage,” the company said.
