The prolonged strike at Premier FMCG’s Mister Sweet factory in South Africa has concluded with a new pay agreement spread over three years. A deal was finalized with the workers on November 1, effectively bringing an end to the industrial action that began on August 19. Employees had been advocating for a minimum wage and a pay increase.
Despite the strike, Premier continued operations at the Wadeville plant in Germiston by utilizing temporary staff. Earlier, some workers affiliated with the UCIMESHAWU and FAWU unions had returned to their positions after accepting a 7% pay increase effective from April, backdated to January. However, a significant portion of the workforce opposed this offer.
Out of 602 employees at the Germiston site, approximately 385 chose to strike in August and were represented by the Simunye Workers Forum (SWF). Premier, however, did not recognize SWF as a legitimate union and declined to enter negotiations. Nevertheless, a settlement has now been reached, allowing the striking workers to return to their jobs on November 11.
“Premier is pleased that agreement has been reached with striking employees and is focused on business continuity, food and employee safety, whilst reintegrating employees back into the business,” said the company in a formal statement. During the strike, temporary employees received ongoing training to develop new skills, potentially aiding their pursuit of permanent roles within the broader food and drink business sector.
The SWF issued a statement confirming the details of the three-year compensation agreement. The pay structure includes a 7% increase for operators and 6% for general workers in 2024, followed by 6% and 5% in 2025, respectively, with the same increments in 2026.
In their statement on November 3, the SWF highlighted the financial losses incurred by Mister Sweet due to the strike. “Mister Sweet lost a great deal of money during this strike in attempting unsuccessfully to maintain lost production,” noted SWF. The organization also expressed gratitude to those who supported the strike and the consumer boycott of Mister Sweet products. The SWF intends to evaluate the strike’s overall impact and draw important lessons for future actions.
As we reflect on this industrial action, it’s essential to consider the emerging trends within the food and beverage industry. Understanding these dynamics is crucial to navigating the evolving landscape of the food and drink consumer trends. Staying informed will enable businesses to maintain a competitive edge amid the inherent challenges within the sector.
