7 June 2006
The MEC for Department of Agriculture G Nkwinti in conjunction with the
Pineapple Industry, Pineapple Growers Association, Collondale Cannery and a
member of Portfolio Meeting, Mr Phila Nkayi, converged at Summerpride Food
Industry to discuss the crisis facing the industry, which finds itself in a
difficult position.
About 500 workers are expected to be retrenched as precautionary measure to
rescue them from current situation. The company has been in existence for the
past 80 years. About 3 000 people are employed in this company which has the
ability to employ more than 4 000 people, but due to the situation they are in,
that will not be easy. They have suffered losses in 2005, which cannot be
sustained until the economic climate improves for exporters.
Mr Allen Duncan, Managing Director for Summerpride Foods, making a
presentation to the MEC, mentioned that the losses in the industry will
continue if the government does not intervene. Some of the aspects that
contributed to the collapse of the company are that the major domestic input
suppliers of raw material (cans and logistical costs) are characterised by
monopolies and cartel formations, withdrawal of South African export
incentives, the collapse of Ulimocor, who constituted a major supplier of
product, historical aversion to invest in the Eastern Cape due to higher costs
and unfair market access into the European Union through import duties. An
employee Zukiswa Kobo, a single mother from Duncan Village, mentioned that she
is the only person working in her household and that she earns R403 weekly. She
would like to see the company prospering so as to get an increment, because the
money she is earning is not enough to feed the whole family.
After discussions the MEC proposed some solutions that will sustain and
prevent the industry from collapsing namely, a total amount of R30,2 million
(shareholdership) grant be provided towards approximately 30% workers equity in
the processing industry and that the Record of Decision in terms of the
proposed Bathurst fibre and biochemical project be fast tracked. Pineapple
Industry stated that they have made application to the Department of
Environmental Affairs and Tourism company six weeks ago and was still awaiting
a response.
He mentioned that a process of consultation with organised labour and the
workers will be started, and facilitate their equity acquisition and due to the
urgency of the matter, he promised to table the above proposals at the
Executive Committee today, 7 June 2006. âAt least I will be discussing this
matter with clear understanding of the scenario; I had limited knowledge of
what is happening hence I missed the appointments in February,â he said.
Enquiries:
Zoleka Dondolo
Tel: (040) 609 3965
Cell: 082 771 7152
Fikile Black
Cell: 082 578 1437
Tel: (040) 609 3486
Issued by: Department of Agriculture, Eastern Cape Provincial
Government
7 June 2006
Source: Eastern Cape Provincial Government (http://www.ecprov.gov.za)
