Global soft drinks giant Coca-Cola Beverages SA (CCBSA) has become the latest corporate player to add to the wave of job cuts in the country as it plans to retrench more than 600 workers.
Food and Allied Workers Union (Fawu) spokesperson Dominique Swartz told Business Day on Thursday: “We received Section 189 notices [dealing with retrenchments] on September 2. The company is planning to retrench over 600 workers.”
Swartz said Fawu, an affiliate of the SA Federation of Trade Unions, would oppose the retrenchments and criticised the consultation process the company was allegedly flouting.
“Section 189 is regulated by the Labour Relations Act, so there is a formal process that has to be followed. Currently, we are not happy with how the company is going about doing that. They don’t seem serious about consulting. They should at least follow due process,” she said. “We are opposed to the retrenchments and we fight them.”
CCBSA was quoted as saying: “In response to evolving industry dynamics, Coca-Cola Beverages SA intends to make adjustments to its organisation that, if implemented, may result in some roles being impacted and may unfortunately result in job losses.
“We have started a consultation process with unions and non-unionised employees who may be impacted. Our priority is to support affected colleagues with fairness, transparency, and compassion during this process. Consultations are under way, and no final decision has been made.”
Steel sector hit hard
The planned job cuts at CCBSA come after embattled steel major ArcelorMittal SA (Amsa) told its employees recently that attempts to save its long steel business had failed, with 3,500 workers now set to lose their jobs. In a memo to employees seen by Business Day, Amsa CEO Kobus Verster said the group would wind down its long steel business by end-September.
- Coca-Cola Beverages SA: more than 600 jobs at risk
- ArcelorMittal SA: 3,500 jobs to be cut as long steel business shuts
- Goodyear SA: more than 900 jobs lost after Kariega plant closure
- Mining industry: nearly 7,000 jobs shed in Q2 2024
- Potential cuts: Ford, Mercedes-Benz, Petra Diamonds, Glencore and Samancor Chrome reviewing jobs under pressure
More than 900 jobs were affected when Goodyear SA recently shut its doors in Kariega, in the Eastern Cape. The tyre manufacturer announced in June it would shut down its manufacturing operations in SA, retaining only its sales, distribution and Hi-Q retail presence.
Other companies that have reportedly trimmed jobs or are planning retrenchments include Ford, Mercedes-Benz and Petra Diamonds.
The National Union of Mineworkers (NUM) recently said it was against potential job cuts in ferrochrome operations run by mining giants Glencore and Samancor Chrome in the country, which were attributed to economic pressures, notably high electricity tariffs. Business Day has reported that high energy costs were damaging SA’s mining industry, which accounts for about 8% of GDP.
Mining companies slash jobs
SA’s mining industry shed almost 7,000 jobs in the second quarter of 2024, reflecting a wave of restructurings and retrenchments as falling prices of platinum group metals, rising input costs and logistical challenges continued to weigh on mining companies.
Employment and labour minister Nomakhosazana Meth has said she is deeply concerned about the retrenchments that are leading to heavy job losses.
Cosatu president Zingiswa Losi, in her keynote address at Cosatu’s central committee meeting in Benoni on Monday, decried retrenchments taking place across various sectors in the economy, saying they stripped workers of their dignity.
In July, Coca-Cola Beverages Africa (CCBA) announced it had invested R365m in a new state-of-the-art bottling line capable of producing 72,000 bottles per hour at its plant in Midrand.
“By launching this new line, we strengthen our ability to meet growing consumer demand and create shared value across the local value chain, including for our customers and communities,” CCBSA manufacturing and technical director Moses Lubisi said at the time.
“Importantly, this investment reaffirms the Coca-Cola system’s local approach — we produce locally, distribute locally and, where possible, source locally.”
CCBA CEO Sunil Gupta was quoted as saying: “This new production line in SA represents a key step in our ambitious growth plans in all our markets on the continent. It enhances our ability to meet consumer needs while reinforcing our commitment to delivering reliability and top-quality beverages across Africa.”
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