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East Coast Radio reports that the Food and Allied Workers Union (Fawu) has been taken aback by Tongaat Hulett's announcement that it could retrench up to 5,000 workers.
According to the company, permanent and temporary workers across its operations in six Southern African Development Community countries would be affected. The sugar industry has been under pressure lately with the implementation of sugar tax and the importation of sugar from other countries. According to Tongaat Hulett, it has undergone a full financial review to stabilise the business. The strategy will aim to address its debt burden, streamline operations and fundamentally change its business model. Fawu’s Mayo Mngomezulu said they would challenge the decision on the basis that due process has not been followed. "We will be meeting with the company. As a matter of fact we have written a letter to the company advising them to follow the prescripts of the Labour Relations Act in terms of retrenchments. They cannot simply retrench by announcing it. The law is clear in terms of processes they need to follow before they retrench. One of those is to notify us, as a union, and they have not done that", Mngomezulu said.
- The original of this report by Steve Bhengu is at East Coast Radio
- Read too, Bitter news for sugar company workers, at The Mercury
Get other news reports at the SA Labour News home page