CAPE TOWN - For the third time in six years, canned fruit factory workers in Ashton face retrenchment, this time leaving 157 breadwinners vulnerable.
The employees at Langeberg & Ashton Foods (LAF)– a division of Tiger Consumer Brands - are up in arms, but feel helpless against the food giant that they say may also sell the business.
According to its website, LAF’s canned fruit and fruit purée concentrate is exported to over 40 countries in six continents.
An employee whose name is being withheld for his protection, said that in 2018, 151 people were retrenched following a round of retrenchments in 2015.
He said many of the people who were retrenched were put in contractual positions, while labour brokers were also brought in.
“The reason given is that the export market has worsened, although local sales are doing well.
“We also have not had an increase for more than two years.
“They bring in labour brokers, and the retrenched workers are put on six month contracts so that they can sort themselves out,” the source said.
Assisting the employees is Nosey Pieterse, president of the Black Association of the Wine and Spirits Industry (BAWSI) and chief negotiator for the Social Development Trade Union.
Pieterse said unions met with management where they were told the company’s losses were in excess of R100 million due to several factors including high manufacturing costs. He said they wanted to see the company’s audited financial books.
“The company argued that the strategy to address the above situation is to redirect sales and to reduce costs to be globally competitive.
“Obviously part of the strategy to reduce costs is the destruction of 157 jobs. For the rest of the cost reduction management has embarked on business process reengineering.
“After they destroy another 157 jobs, they will still be here while the workers have been retrenched,” Pieterse said.
Tiger Brands said LAF was undergoing a business optimisation review process.
“At the end of August 2021, and as part of its efforts to rationalise and improve operational and business efficiencies at LAF, the Company commenced with a consultation process in line with Section 189A of the Labour Relations Act, 1995.
“The process is being facilitated by the CCMA and impacts 128 employees of LAF.
“The Company is engaging closely with representative trade unions to conclude on the matter and to minimise as best as possible the impact on individuals.
“The Company previously indicated that it is pursuing a formal process for the potential disposal of the deciduous fruit business at LAF. The Company continues to pursue this option and will issue further communication as and when appropriate,” Tiger Brands said.
Responding to questions the Department of Employment and Labour said it will engage Tiger Brands to establish if the retrenchment process is being followed.