The indefinite pay strike at Tiger Brands’ snacks and treats division has disrupted its operations so severely the company will have to continue operations right through the festive period to claw back production.
Like most companies in SA, the food producer’s employees always take a break over the festive season and return to work in January.
The industrial action in KwaZulu-Natal started on November 10 when about 1,200 members affiliated to the African Meat Industry and Allied Trade Union (Amitu) downed tools at the division, which makes chocolates and sweets, in support of their demands for a 7% pay increase.
The workers rejected the management’s proposal for a pay rise of 3%, the lower end of the Reserve Bank’s 3%-6% target range and lower than the 5% clocked in September and October.
Responding to questions from Business Day on Wednesday, Tiger Brands — which owns SA staples such as Tastic rice, Beacon chocolates, and Gill shampoo — said it is committed to engaging employees and their recognised representative trade union to resolve the dispute.
“Prior to the strike commencing, no less than four meetings took place between the management team and the union, with a further four CCMA [Commission for Conciliation Mediation and Arbitration] facilitated mediation sessions,” the company said in a statement.
Tiger Brands said despite these engagements and the company’s ongoing attempts to reach a settlement, the union is yet to table an updated settlement proposal.
Financial hardship
Tiger Brands has also been affected by the Covid-19 lockdowns which caused the economy to contract 6.4% and lead to a loss of about 1.4-million jobs in 2020.
“In recognition of the loss of income and the financial hardship employees are experiencing as a result of this protracted strike action, during which the no work no pay principle applies, the company will pay a ‘13th cheque’ to qualifying employees of the snacks & treats division before the end of December 2021, even though the strike continues,” the company said.
Tiger Brands was among businesses affected by the violent unrest in Gauteng and KwaZulu-Natal in July, forcing the food producer to temporarily close all operations in KwaZulu-Natal. It lost more than R150m due to the violence.
In July, the company had more than R1bn wiped off its off its market value after recalling millions of canned vegetable products, in its latest food concern after a listeriosis outbreak in 2017 that killed more than 200 people.
In October, operations at Tiger Brands’ Albany Bakery in Germiston were interrupted after a wildcat strike that resulted in bread shortages across Johannesburg. The company later applied to the labour court, which declared the strike illegal.
On Wednesday, Tiger Brands said it has contingency plans in place and is “working hard to ensure continued supply to meet the needs of our consumers”.
“The strike has, however, disrupted normal operations. Therefore, the snacks and treats operations will not close over the festive period as has been customary in the past. Operations will continue throughout the festive season.”
The company did not answer a question about the financial implications of the industrial action.
Amitu national co-ordinator Lungelo Makhathini said that the strike will continue.
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