South Africa: Sugar Workers Down Tools

Tongaat Hulett workers demand a 13% wage increase

Tongaat Hulett workers protested outside the company's offices north of Durban on Wednesday, demanding a 13% wage increase against the employers' offer of 5.4%. They are also asking for a R1,000 transport allowance and a R1,500 housing allowance.

Workers from several sugar producers, mostly represented by the Food and Allied Workers Union (FAWU) and the Association of Mineworkers and Construction Union (AMCU), have been on strike since Monday.

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On Wednesday GroundUp visited workers picketing at Tongaat Hulett's offices.

This comes two months after Tongaat Hulett was saved from liquidation in an eleventh-hour deal securing funding from the Industrial Development Corporation (IDC) for a second time. In April, amid an urgent court application by business rescue practitioners, the IDC agreed to increase its financing from R2.3-billion to R2.5-billion. This allowed the company to open its mills ahead of the crucial sugarcane milling season.

But production at the sugar company appears to be in trouble yet again. Striking workers told GroundUp only essential workers had been allowed onto the premises, and production had mostly been at a standstill since Monday.

At one site, GroundUp saw empty trailers used to transport sugarcane parked inside the yard.

AMCU regional secretary Christopher Ndebele said the union represents 1,828 of the 5,778 workers currently on strike at Tongaat Hulett. "If the workers want 13%, we will push for it when we negotiate with the employer," Ndebele said. He said wage negotiations had started in February.

FAWU national sugar sector organiser, Sibonelo Mbuyazi, said a total of 6,043 workers are on strike, including those at other sugar producers like Illovo Sugar South Africa's Sezela Mill, where 404 workers on strike. Some of the striking workers are not union members.

Avinash Gobind, acting managing director at Tongaat Hulett, said the current strike was industry-wide. "The company therefore does not believe it would be appropriate to comment. Tongaat Hulett respects employees' right to participate in lawful protected industrial action and remains actively engaged through the relevant industry structure as discussions continue.

"Tongaat Hulett hopes the outstanding matters will be resolved soon through the industry bargaining process."

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