CLOSURE OF LICHTENBURG CLOVER DUE TO RESTRUCTURING
The Food and Allied Workers' Union notes the public outcry over the closure of the Clover
cheese factory in Lichtenburg in the North West that will affect some 227
members out of a workforce of close to 300 employees. We are shocked but not surprised at the
company’s revelations.
FAWU wishes to place on record that the union has
received a section 189 notice from the company in 2018 as a result of Clover’s
intentions to embark on a restructuring process. It therefore cannot be true
that the closure of the cheese factory is solely due to municipal service
delivery failures. While it might have been
a contributing factor at the time, the company did not reveal any service
delivery related problems to FAWU. In fact, it seemed the move came because of
a planned merger between Clover and Milco which went to the Competition
Commission for approval in 2019. To this effect, the company made known
their intentions to merge certain production plants and undergo a subsequent
section 197 transfer that affected many employees. During a session at the
Competition Commission Tribunals, Clover even assured FAWU that employees would
not suffer job losses and that current jobs will be guaranteed until October
2022 when the Lichtenburg plant is scheduled to shut down for good.
While the company calls the process “restructuring” it
still makes it difficult for workers to keep their jobs as some are unable or
unwilling to relocate and therefore subject themselves to voluntary packages.
In the end it amounts to job losses albeit indirect. A few employees have subsequently
accepted job offers in Durban and other plants. However many are frustrated
about the process and doubt whether they will accept the offer to relocate due
to anticipated expenses and uncertainties.
FAWU is of the view that Clover, like other companies
could have made other arrangement or a plan to mitigate around poor infrastructure
if they were indeed genuine in terms of preserving jobs.
The closure
of the Clover plant in Lichtenburg will affect entire families, communities and
will negatively impact the township economy as purchasing power is taken away
from many who relied on the company for income.
FAWU is doing everything in its ability but we are limited
in terms of challenging current labour legislation. We are of the view that government
needs to intervene to account as to why infrastructure is an obstacle to job
creation and preservation.
We will
fight tooth and nail for justice for our members during this restructuring
process!
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For more information please call FAWU
General Secretary Mngomezulu Mayoyo - 082 440 4039 or the Deputy General
Secretary Vuka Chonco - 082 499 5854. Released by Dominique Martin-
082 498 5631
