COSATU shocked by exclusion from Premier Foods factory closure talks

Consultations on retrenchments at Premier Foods’ fruit canning factory in Tulbagh are ongoing. Photo: Greg Dor

• COSATU Western Cape will no longer be able to participate in talks over the proposed closure of Premier Foods’ fruit canning factory in Tulbagh.
• COSATU says it was invited by its affiliate AFADWU to join the consultations but a commissioner at the Commission for Conciliation, Mediation and Arbitration found that it had no standing to participate.
• Meanwhile, the Competition Commission is investigating whether the proposed closure breaches conditions attached to Premier’s acquisition of Rhodes Food Group.

COSATU Western Cape says it is shocked by the Commission for Conciliation, Mediation and Arbitration ruling last week that the labour federation may no longer participate in talks over the proposed closure of Premier Foods’ fruit canning factory in Tulbagh.

Malvern de Bruyn, COSATU Western Cape provincial secretary, said, “The commissioner ruled that I am not employed by the Agricultural Food and Allied Democratic Workers Union (AFADWU).”

De Bruyn said COSATU had argued that AFADWU is an affiliate of the federation and that the federation, as its “mother body”, had standing to participate when invited by the union.

But commissioner Willem Connan disagreed, ruling: “I find that Malvern de Bruyn, in the position he seeks to represent (as COSATU), lacks locus standi to represent AFADWU in the current section 189A facilitation process”.

“We are the mother body, and our view was that we had locus standi,” said De Bruyn. “If AFADWU invited us to join them in negotiations, they are allowed to do so … so we are quite shocked by that ruling.”

The commissioner also ruled that an AFADWU shop steward, who was a seasonal worker, could not participate “in the absence of proof that he is still an employee”.

The ruling follows a dispute during a 26 August consultation meeting, when Premier objected to both De Bruyn and the shop steward.

De Bruyn had participated in the first round of consultations, but Premier challenged his participation when the second round began.

The dispute brought the meeting to a halt and was referred to the commissioner.

Unions Solidarity and National Union for All Sectors (NUFAS) and the remaining AFADWU representatives continue with the talks.

Alternatives to closure

COSATU and AFADWU had called for the closure process to be suspended for 12 to 24 months to allow alternatives such as new ownership or business rescue to be investigated.

COSATU had also approached NEDLAC for a section 77 engagement involving Premier, workers and unions, producers, government and community organisations.

But the 60-day consultation period is due to end soon – on 26 September.

“They don’t have any intention to keep the company open,” said De Bruyn.

“I believe there was a potential investor, and the company put questions to the investor, and thereafter the investor didn’t come back to continue those discussions.”

“We don’t see that as meaningful engagement because they don’t have any interest in saving jobs, for them the aim is just to close the factory.”

Competition Commission investigates

The dispute is taking place while the Competition Commission investigates whether the proposed closure breaches conditions attached to Premier’s acquisition of the Rhodes Food Group.

The Competition Tribunal approved the merger on 6 March, including a three-year moratorium on retrenchments resulting from the merger. A further condition provides that retrenchments during the moratorium are presumed to be merger-specific unless Premier can demonstrate otherwise.

The Commission has confirmed it is investigating whether relevant information about the Tulbagh plant was disclosed during the merger process.

If a breach is ultimately established, the competition authorities can impose an administrative penalty of up to 10% of the firm’s annual turnover in South Africa and its exports from South Africa, or revoke approval of the merger.

In response to questions from GroundUp, Premier said the consultation process “is still underway” and it remains committed to following due process. The company said it could not provide substantive comment on the dispute over representatives or the commissioner’s ruling while consultations were continuing.

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