Faction fights eating our profits, says food union

File picture: Bongiwe Mchunu

File picture: Bongiwe Mchunu

Published Aug 24, 2016

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Johannesburg - The Food and Allied Workers Union (Fawu) has blamed its deteriorating finances on ongoing factional battles within the union.

The union, which represents some of the most vulnerable workers in the country, has accumulated debt of more than R12 million, including nearly R5 million owed to labour federation Cosatu for affiliation fees.

Fawu leaders were also yet to settle costs incurred after they hired lawyers to represent the union when axed provincial leaders took them to court for fighting several union decisions, including Fawu's stance on Cosatu.

The union is holding its national congress in Bela Bela, where delegates will decide whether to leave Cosatu for a new labour federation to be formed by next year. Many members and leaders have butted heads with Cosatu over its decision to give Zwelinzima Vavi and Numsa the boot.

If members vote yes, the union will not have to pay its debt to Cosatu.

Yesterday, the union's internal squabbles took centre stage while its secretariat report was being discussed.

In what has been described as the Durban Project, Fawu leaders allege that a service provider that sought to deal with the union's provident fund bankrolled meetings held by disgruntled provincial leaders who wanted to sow division within the union.

The group, who have since been kicked out of the union even though they are still fighting the matter in the courts, challenged national executive committee decisions. They had also interdicted earlier attempts to hold the national congress, which was postponed seven times.

“The union has spent several million rand defending itself as a result of legal action. It is estimated that in the cost orders against the union, we may fork out close to R1m, with an estimated R200 000 already demanded.

“For our own lawyers we have already paid R700 000 and we owe another R560 000 so far, but this will rise,” said Fawu general secretary Katishi Masemola.

Another contentious issue in the 127 000-member union were allegations, made by a faction opposing the current leadership, that money was being misappropriated through investment companies established to grow workers’ wealth.

But this was dismissed by Fawu president Attwell Nazo in his report to the congress. He said the union had managed to restructure its portfolio, which would be presented to members at the congress.

The union would also need to figure out how to cut its massive wage bill, which currently stands at more than 55 percent of its total spend at R36.5 million for a total staff complement of 130.

The union would also need to find creative ways of attracting members in a country where trade union popularity was dwindling by the day.

The congress continues today, when new leaders are to be announced.

@ThetoThakane

THE STAR

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