Cosatu in the Western Cape has described the imminent closure of the Tiger Brands canning factory in Ashton as a disaster for workers, and has called on the government to intervene urgently.
Cosatu provincial secretary, Malvern De Bruyn, said in a statement that the union was “shocked and disturbed” by the food producer’s decision to close the factory.
“This ill-informed decision will lead to thousands of jobs being lost. That decision will also have devastating effects on the surrounding communities whose livelihoods depend on this factory. We call on Tiger Brands to review its insensitive decision and engage stakeholders, including Cosatu, to explore serious alternatives to closure,” De Bruyn said.
“Cosatu calls on the Ministry of Agriculture, Land Reform & Rural Development to urgently intervene in this matter. We also call on development finance institutions, such as the Industrial Development Corporation, to urgently intervene to help prevent a pending disaster of major proportions.”
De Bruyn said Cosatu would engage with its alliance partners, civil society and key stakeholders in the Langeberg area to formulate a strategy to assist the community of Ashton and residents in the surrounding areas.
Cosatu has added its voice to the growing concern over the closure of the factory.
Agri SA executive director, Christo van der Rheede, earlier said farmers had appealed to the government to intervene as the food manufacturer had “shocked personnel, producers and clients” by giving them notice of a 60-day consultation period regarding its intention to close the canning factory. This comes after a consortium of food producers had attempted to explore solutions to buy the factory from the Tiger Brands but found that it was between R200 million and R300 million short of the required investment to close the deal. He warned that up to 4 300 jobs in peak season farm jobs as well as 250 permanent factory employees were in jeopardy due to the closure.
“Agri SA is concerned that the closure of the factory would be a socio-economic disaster for the region, with ripple effects throughout the value chain. At a time when job creation and economic growth are desperately needed for the maintenance and recovery of the national economy, the Agro-processing sector cannot afford this closure.”
He said it was essential for Tiger Brands to come to the negotiating table with producers and factory workers to find a solution.
Tiger Brands said in a statement on Friday that it had embarked on a “consultation process with permanent and seasonal employees” in line with the Labour Relations Act, after a growers’ consortium had been unable to secure funding to buy the division by the deadline of March 31, 2022.
