Cape Town - Agri SA says the decision by Tiger Brands to extend operations at its Langeberg and Ashton canning fruit factory is a vital reprieve for the sector and for the communities that rely on the facility for their livelihoods.
The company made the decision to keep the plant’s doors open for 12 months following an agreement with various unions, including Cosatu.
“The flexibility, open-mindedness and good faith shown by all parties in reaching this compact will allow for the rigorous exploration of any new proposals in respect of the company’s deciduous fruit processing operations while securing the jobs of 250 permanent employees and 4 300 seasonal workers directly employed by L&AF for a further season,” said Tiger Brands chief executive Noel Doyle.
In June 2022, Tiger Brands commenced consultations and engagements on the future of the business in the absence of any reasonable prospects of a viable transaction at the end of an exhaustive two-year process.
Cosatu said the extension of operations was a great victory as nearly 7 500 jobs linked to the value chains in the area had been saved.
“The time will be used by the parties to find a buyer and to transform the company for the future,” it said.
Agri SA executive director Christo van der Rheede said the factory was the biggest in South Africa and its products occupied a niche position in the world market, bringing in hundreds of millions of rand in foreign currency.
“It remains essential that the national and provincial governments support the producers and workers to find an effective solution. R200, R300 million is a significant investment, and the consortium seeking to save the factory will require support to secure this funding.”
Cape Times