Cosatu has hailed as a “great victory” the agreement trade unions have struck with Tiger Brands to keep the doors of its Langeberg & Ashton Foods (L&AF) deciduous fruit factory open for another 12 months.
Tiger Brands announced last week that it would extend operations at the factory for a further season after a compact was agreed upon with organised labour, L&AF employees, and members of the Canning Fruit Producers’ Association.
The company said in a statement that it would continue to engage with “interested parties towards executing a transaction” that could allow the factory to remain open beyond the 2022/3 season. A total of 85% of the factory’s canned fruit and puree products are exported to markets including Europe, China, Australia and Japan.
This comes after the FMCG firm started consultations and engagements with employees regarding the closure of the business in June because it had not found a buyer for the operation over the past two years. However, trade unions vowed to fight to keep the factory open and escalated the matter politically and in the media.
Tiger Brands said that in recent weeks “a significant number of parties” had now “expressed an interest in further discussions on the possible acquisition of L&AF”. However, the conclusion of any transaction would not have taken place in time for a successful buyer to put the required preparations in place to process the upcoming 2022/3 season’s crop.
“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,” Noel Doyle, Tiger Brands CEO said.
“While the processing and marketing of deciduous fruit remain subject to the vagaries of weather, exchange rates and global pricing dynamics, the compact meaningfully contributes to mitigating the risk of significant operating losses in the forthcoming season.”
The company said it would explore all options while assessing the viability of current interest in the facility.
Cosatu Western Cape secretary, Malvern De Bruyn, said trade unions had “forced” Tiger Brands to keep the plant open for 12 months.
“The time will be used by the parties to find a buyer and to transform the company for the future. This great victory of the unions has secured the nearly 7500 jobs linked to the value chains in the area, to remain and not be lost through the closure,” De Bruyn said.
National government, through the departments of trade, industry and competition, and agriculture, forestry and fisheries had stepped in to help unions keep the factory open, he added.
“We reluctantly thank Tiger Brands for working with labour to keep the plant open. The farmers in the area are also working with labour to find lasting solutions, but they must know that we want a new ownership model that includes workers and communities with decent work provisions. We remain committed to expanding this business and working in partnership to improve the agriculture value chains in the district,” he said.
