- Protests & Consultations: Workers, local community members, and labor unions (including COSATU Western Cape) staged demonstrations outside the Tulbagh fruit canning plant as formal Section 189 retrenchment consultations got underway.
- Competition Commission Investigation: The Competition Commission is currently evaluating whether the proposed closure violates merger conditions attached to Premier Foods’ acquisition of RFG Holdings, which included commitments to prevent merger-related retrenchments for three years.
Livelihoods & Economic Impact
The proposed shutdown of the facility poses significant risks to the agricultural supply chain in the Cape Winelands:
- Direct & Seasonal Factory Jobs: Approximately 3,500 permanent and seasonal positions are directly at risk.
- Farm Workers & Farmers: More than 2,000 permanent farm worker jobs and the livelihoods of around 200 commercial fruit producers and suppliers face severe disruption.
- Agricultural Output: The plant processes up to 60,000 tonnes of fruit annually and purchases approximately R300 million worth of produce from regional farmers each year. COSATU alleges that existing three-year supply agreements are not being honored, leaving growers with unmarketable crops.
Points of Contention
Executive Remuneration vs. Retrenchments: COSATU strongly criticized the company, citing Premier Foods CEO Kobus Gertenbach’s reported R26.1 million remuneration (including a R17.4 million bonus) for the 2026 financial year while thousands of workers face job losses.
- Company Rationale: Premier Foods attributes the proposed closure to structural challenges and declining global demand.
- Union Counterclaim: COSATU contends that the decision is driven by corporate cost-cutting measures stemming from recent mergers rather than genuine economic unsustainability, and has called for an immediate halt to Section 189 consultations.
