FAWU DEMANDS GOVERNMENT INTERVENTION IN TONGAAT- HULETT DEBACLE

 

The Food and Allied Workers’ Union completely rejects the way the recent announcement of Tongaat-Hulett regarding their intention to file for business rescue was done. This unexpected move has created huge uncertainty among employees and suppliers and could have serious consequences for the industry and the South African economy as a whole.  It is disturbing that the company has filed for business rescue without even a notice to the relevant unions who represents thousands of members at the Amatikulu, Felixton, Voermoon, Maidstone and Refinery plants.

 

This shocking move by the company shows utter disregard towards employees and affected businesses. With Tongaat-Hulett being such a major supplier of sugar, it also has far-reaching consequences for the whole sugar value-chain and the economy of the country with many fearing it could lead to the market being flooded with cheap imports.  Furthermore , it flies flat in the face of the ideals of the Sugar Master plan which included addressing job retention  and sugar value chain diversification, amongst other things.

 

Whilst we acknowledge that a business rescue task team has been established to brief stakeholders about the progress, we still require answers on certain issues from the company management themselves. For this reason, FAWU seeks the urgent intervention of the Department of Trade and Industry to try and avert a full-blown economic disaster in the sugar sector and the decimation of jobs.

 

For more information please call the FAWU General Secretary Mayoyo Mngomezulu on 082 440 4039 or the Deputy General Secretary Vuka Chonco on 082 499 5854. Released by FAWU media liaison officer Dominique Martin on 082 4985631