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Fin24 reports that JSE-listed York Timbers is hopeful that the worst of its battles with its workforce are behind it now that it has severed ties with the National Union of Metalworkers of SA (Numsa).
The forest owner and solid-wood processor suffered a crippling strike between April and June that resulted in widespread damage, arson and intimidation of employees. Following legal battles, it dismissed Numsa's call for leniency towards its members, also terminating the union's recognition citing a "material breach". York, which employs about 2,000 staff, saw its profits crash by three quarters in its year to end-June. Speaking on Wednesday, CEO Gerald Stoltz said that since the dismissal of a "significant portion" of its staff base during the strike, the group had actively been employing people from local communities in Mpumalanga. He claimed this was having a stabilising effect on labour relations at the firm. Stoltz said it was "extremely important" for the company to hire locally, especially given that its operating footprint was "quite rural," and characterised by high levels of unemployment, particularly among the youth. In his financial results presentation, Stoltz explained that what had created problems was that previously the company had in place "production villages" next to its plantations with many former employees there coming from areas far away from operations. According to Stoltz, much of the intimidation of employees during the strike happened in those production villages. York’s other new strategy was to establish work place forums which promoted communication between employees and their supervisors. Explaining the basis of the breach that led to the termination of the recognition agreement with Numsa, Stoltz said: "Their constitution does not make provision for bargaining in our sector, which is the sawmilling sector, so that was the breach that they were not able to remedy." This does not mean another union may not emerge to represent workers at York’s operations. "Being quite a big employer which employs more than 2,000 wage employees, we will always be pursued by unions and for them the drive is membership," said Stoltz. Numsa did not immediately respond to requests for comment.
- Read the full original of the report in the above regard by Nick Wilson at Fin24 (subscriber access only)
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