Workers, members of the local community, and trade unions gathered in front of the Premier Foods fruit canning factory in Tulbacha on Thursday to express outrage as Section 189 consultations began regarding the proposed closure of the facility.
This protest, attended by employees, local residents, and organized workers, took place on the factory grounds at the start of the company's proposal discussion to close the site. The planned closure has raised growing concerns about its potential impact on employment and agricultural production in the Cape Winelands region.
In a statement, Cosatu Western Cape Malvern Secretary De Bruyn stated that the federation is 'deeply shocked and outraged' by this proposal, especially considering that Premier Foods CEO Kobus Gertenbach reportedly receives a total compensation package of 26.1 million rand for the 2026 financial year, including a bonus of 17.4 million rand.
De Bruyn noted: 'This bizarre display of greed places management wealth above the livelihoods of workers and the economic survival of the Tulbacha community.'
According to Cosatu data, the proposed closure threatens approximately 3500 permanent and seasonal jobs at the factory, over 2000 permanent farmer jobs, and the livelihoods of around 200 commercial fruit producers and their suppliers.
The federation reported that the factory processes up to 60,000 tons of fruit annually and purchases produce worth about 300 million rand from local farmers. Furthermore, Cosatu alleged that Premier intends not to honor existing three-year supply agreements with producers, leaving many farmers with fruit intended for the next season after they have already invested in production.
De Bruyn added: 'While the company blames structural issues and declining global demand, Cosatu views this decision as a direct result of cost-cutting following the merger, which ignores commitments made to protect jobs.'
The federation also mentioned an ongoing investigation by the Competition Commission into whether the proposed closure violates conditions related to Premier Foods' acquisition of RFG Holdings. According to Cosatu, Premier committed within the merger terms not to reduce staff as a result of the deal for three years. The Competition Commission is investigating complaints that the proposed closure may be incompatible with these commitments.
De Bruyn sharply stated: 'It is an absolute disgrace that Premier Foods can reward its CEO with a 17.4 million rand bonus while throwing thousands of workers and their families onto the street.' He continued: 'This is not a story of economic sustainability. It is a story of corporate greed. The Tulbacha factory is being sacrificed to increase executive bonuses and shareholder profits.'
Cosatu called on Premier Foods to halt the Section 189 consultation process, honor existing supply contracts with producers, and explore alternatives to closing the factory. The federation warned that if the company proceeds with the closure, it will consider escalating the issue through further community mobilization and legal action. De Bruyn concluded: 'Workers and communities will not stand idly by while a profitable company reneges on its obligations and destroys lives. The time for dialogue has come.'
The proposed closure has heightened concerns about the future of one of the key fruit processing plants in the Western Cape. The citrus industry in the province is a significant source of rural employment, as processing plants support jobs in agriculture, transport, packaging, and other parts of the agricultural value chain. Stakeholders warned that closing a major processing facility could have consequences extending far beyond the factory itself.
At the time of publication, Premier Foods did not respond to requests for comment. The Competition Commission continues to assess complaints regarding the compliance of the proposed closure with the conditions attached to the acquisition by RFG Holdings.
