The Congress of South African Trade Unions (Cosatu) has criticized the company Premier Foods regarding its plans to close its fruit canning factory in Tulbagh. The union warns that this decision could jeopardize the jobs of thousands of people and the livelihoods of local farmers.
Furthermore, the union expressed concern over the company's CEO, Kobus Gertenhab, who is reportedly due a bonus of R17.4 million, which would increase his total compensation for the 2026 financial year to R26.1 million.
Cosatu stated that 'the proposed closure of the Fruits Products Western Cape (FPWC) factory in Tulbagh will lead to the devastation of the region.' It specified that this threatens approximately 3500 permanent and seasonal jobs at the factory, over 2000 permanent farm worker positions, as well as the livelihoods of about 200 commercial producers and their suppliers. The factory processes up to 60,000 tons of fruit annually and purchases products worth R300 million from local farmers.
The union also warned that farmers could suffer losses, as some producers have already invested in preparing for the next season and may be left without buyers for their produce. Cosatu linked the planned closure to Premier Foods' acquisition of RFG Holdings, believing it is part of a cost-cutting process.
The Competition Commission is investigating whether the closure complies with the conditions attached to the merger. The union called on Premier Foods to immediately cease the Section 189 consultation process, fulfill its contracts with producers, and find a sustainable solution for the Tulbagh factory. Cosatu stated that they support workers, farmers, and the entire community in opposing this 'heartless decision.'
The union warned that if Premier Foods does not meet these demands and continues the Section 189 consultation process with the intention of closure, they will have no choice but to organize mass public protests to protect jobs and livelihoods, and file an urgent injunction to halt this reckless process. Cosatu Western Cape will engage with all stakeholders, including the Government and the Competition Commission, to ensure the reversal of this reckless decision and prioritize the interests of workers and local communities over excessive executive pay.
