Premier FMCG has confirmed that it has reduced production capacity at its confectionery plant, Mister Sweet, due to a three-week ongoing crippling workers’ strike.
Employees at Premier’s Wadeville confectionery operations embarked on a protected strike last month due to a wage dispute as they demand a living wage of R19 500 from the current R6 000 per month for the lowest paid workers.
Premier’s Wadeville Confectionery manufacturing facility produces sugar confectionery for Mister Sweet, Manhattan, Champion, Frutus, Candy Tops and Rascal brands for the broader SADC market and some international markets.
Premier on Friday said it reached an agreement with the union, UCIMESHAWU, to implement a 7.0% wage increase backdated to January 2024, which is above average wage inflation.
While this was accepted by the majority, Premier said some employees rejected the increase, demanding a R19 500 per month basic wage and a R15/hour increase for workers earning more than R19 500.
The matter was then referred to the Commission for Conciliation, Mediation and Arbitration (CCMA) by employee representatives and no agreement was achieved.
Workers then issued Premier with a notice of intention to strike last month, but Premier issued a lockout notice for employees participating in the strike.
As a result, 385 out of a total complement of 602 employees participated in the strike, with some having returned to work during the course of the strike.
Siobhan O’Sullivan, Premier’s managing executive for group strategy and marketing, provided “Business Report” with the company’s official statement on the matter.
Premier said the business continued to operate with the balance of skilled employees supplemented by temporary staff.
The company said that it has, and will continue to engage with employees to resolve matters and ensure a safe working environment for all while ensuring business continuity.
“Premier is committed to providing a safe working environment for all our employees while ensuring continued supply of products to our customers and consumers in the communities in which we operate,” the company said.
“We have and will continue to engage with the employees and their union representatives to resolve the strike quickly and amicably. It is regrettable that some employees have resorted to intimidation and violence towards those wishing to continue working.”
Premier also said the majority union at the Wadeville confectionery site was UCIMESHAWU, but the union lost approximately 13% of its membership in the first quarter of the year.
It said workers have opted to become non-unionised and have formed a workers’ forum, and these employees were participating in the strike.
Meanwhile, the Simunye Workers' Forum (SWF) and 26 other organisations from six provinces have called for the boycotting of Mister Sweets products until workers’ demands are met.
The SWF accused Mister Sweet management of responding to workers’ aspirations with threats, underhanded tactics, stubbornness and arrogance.
It said the wages that the Mister Sweet bosses pay the workers condemned them to poverty and a struggle to meet their needs.
“They have flatly refused to engage with workers’ demand for a living wage. Instead, when workers gave notice of their strike, management responded by locking workers out.
“They want to force workers to accept a paltry 7% increase which they agreed with a minority union. They have said that the longer the strike continues, the less of an increase they are willing to offer workers,” the SWF said.
“Mister Sweet is owned by Premier FMCG. Premier is one of the biggest food companies in the country. Last year, they made R921 million in profit. This was an increase of 15.8% from the previous year.
“These profits depend on the exploitation of workers. All production at Mister Sweet comes from the hands of workers. But Premier pays workers poverty wages so that they can make as much profit as possible.”
BUSINESS REPORT