A union representing striking workers at Premier FMCG’s sweets factory has raised new allegations against the South Africa-based food company. The Simunye Workers Forum (SWF) contended that workers who persist in their strike at the Germiston facility, known for producing the Mister Sweet brand, were offered repayable loans to incentivize their return to work.
Additionally, the SWF claims that Premier FMCG is compensating temporary workers, who were hired to maintain production, at a higher rate than permanent employees. Many of these permanent staff members continue their strike demanding enhancements in wages and benefits. The union also pointed out that the company is actively interviewing for permanent positions while threatening to restrict pension fund access for those on strike.
In response to these latest allegations amid the ongoing strike, which has lasted over two months, Premier FMCG reiterated previous statements. “Over the past few weeks, many employees have returned to work after engaging with the company,” they mentioned.
Furthermore, Premier FMCG clarified that all employees have access to their pension funds, managed by Sanlam Provident Fund, allowing them to apply directly to the service provider for withdrawal.
So far, 280 employees from the facility, including both striking and non-striking workers, have sought to access their pension funds. A Premier FMCG spokesperson confirmed that the pension system permits withdrawals before retirement, while retaining a portion of the funds untouched.
The company stated its operations continue with a balance of skilled personnel supplemented by temporary workers. In contrast, SWF claims negotiations with Premier FMCG fell through recently when the company refused to engage with the union that the workers selected, which they argue is both “unconstitutional” and a violation of their “inalienable right to freedom of association.”
At the same time, Premier FMCG has contended that SWF lacks recognition as a union. Thus, the Commission for Conciliation, Mediation and Arbitration (CCMA) has ruled that the company is not obliged to engage in discussions. “An employee forum, which is not a recognised union per labour regulations, has issued wage demands on behalf of some employees,” Premier stated, adding that the CCMA deemed the company under no obligation to negotiate with unrecognized entities.
Additionally, Premier explained that numerous CCMA hearings have consistently denied SWF representation for not being registered as a recognised union or law firm, which are prerequisites necessary before the onset of the strike.
Before the strike commenced in August, Premier FMCG indicated that through another union, UCIMESHAWU, workers were offered a pay increase of 7%—above inflation—effective from January. While some accepted this, others rejected it. Initial demands included a basic salary of R19,500 (approximately $1,104) monthly along with a R15 hourly increase for employees on that wage level. “While this was accepted by the majority, some employees rejected the increase,” Premier noted, adding that the remaining cases were referred to the CCMA, but no agreement was reached.
Premier affirmed that 385 out of a total workforce of 602 at the Germiston site joined the strike. The spokesperson added that 58 employees have returned to their duties, leaving 327 still participating in the strike. The SWF has also alleged that another temporary worker was injured while operating complex machinery, citing insufficient training from management.
Regarding the injuries, the spokesperson stated that three temporary employees were involved in incidents that were reported to the Department of Labour. Following inspections, the department ruled that the training provided was adequate.
Premier FMCG denied allegations of paying temporary staff more than their permanent counterparts. They further clarified offering striking employees temporary financial support for transportation and essential needs without undermining the strike’s integrity.
Finally, SWF expressed that factories in post-apartheid South Africa generating significant profits should not operate as Mister Sweet does, paying workers only R6,000 monthly after years of service. In response, Premier emphasized its commitment to fair employee treatment and maintaining standardized pay rates across its workforce, which includes both permanent and temporary staff.
In today’s food and beverage industry trends, it is essential for companies to prioritize fair labor practices and employee welfare in order to address food and drink consumer trends and ensure sustainable business operations.
