The Congress of South African Trade Unions (Cosatu) has criticised Premier Foods over the planned closure of its Tulbagh fruit canning plant, saying the move could put thousands of jobs and local farming livelihoods at risk.
The union has also raised concerns about the company’s CEO, Kobus Gertenbach, who is reportedly set to receive a R17.4 million bonus, taking his total remuneration for the 2026 financial year to R26.1 million.
"The proposed closure of the Fruits Products Western Cape (FPWC) plant in Tulbagh will devastate the region," the union said.
"It threatens approximately 3,500 permanent and seasonal factory jobs, over 2,000 permanent farm workers, and the livelihood of around 200 commercial producers and their suppliers. The plant processes up to 60,000 tons of fruit annually and purchases R300 million worth of produce from local farmers".
Cosatu warned that farmers could also suffer losses, saying some producers had already invested in preparing for the next season and could be left without a buyer for their fruit.
The union has linked the planned closure to Premier Foods’ acquisition of RFG Holdings, saying it believes the move is part of a cost-cutting process.
The Competition Commission is investigating whether the closure complies with conditions attached to the merger.
"The Tulbagh plant is being sacrificed to boost executive bonuses and shareholder returns. We call on Premier Foods to immediately halt the Section 189 consultation process, honour its contracts with producers, and find a sustainable solution for the Tulbagh plant. We stand with the workers, the farmers, and the entire community in opposing this heartless decision".
The union warned that "should Premier Foods fail to comply with these demands and continue with the Section 189 consultation process with the intention of closure, we will have no other option but to":
• Organise mass community protests to defend jobs and livelihoods, and
• File an urgent court interdict to halt this reckless process
"COSATU Western Cape will be engaging with all stakeholders, including Government and the Competition Commission, to ensure that this reckless decision is reversed and that the interests of workers and local Communities are placed ahead of obscene executive pay".
IOL Business