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COSATU goes to battle for farmworkers

The Congress of South African Trade Unions (COSATU)’s General Secretary, Solly Phetoe, is set to meet with an employer who is alleged to be refusing to pay 500 farmworkers their salaries and severance pay.

The Department of Employment and Labour together with the Department of Rural Development and the Khutso Naketsi Communal Property Association (CPA) will also join the meeting. The employer, Henning Pretorius, and his family ran the farm for 40 years until it was bought for R460 million under government’s land restitution program. The land was returned to 325 beneficiary households in the community of Skeerpoort in the North West, who then constituted the CPA.

Given the beneficiaries had no prior experience running a 1 923 hectares farm, Pretorius was the ideal mentor. According to the post settlement plan the CPA and Pretorius would form a transitional company that would be responsible for managing the farm. The CPA would hold 70% of the shares in the company, while the remaining 30% would be held by Pretorius. Each would have two representative directors on the board of the transitional company. This arrangement would be in place for five years, after which the CPA could opt to terminate the agreement and acquire the 30% back or renew the management agreement.

The transitional company would be funded by the North West Department of Rural Development and Land Reform to the tune of 87 million and Pretorius would contribute R26 million. However, when the funding from Rural Development and Land Reform did not materialise, Pretorius used his own resources to ensure the company was operational. As security for the ‘loan’, it was agreed Pretorius would take control of the 70% of the company held by the CPA until such time as the department provided funding. In November of 2019, the department approved the release of the post settlement funding but has only paid over a portion of the funds since.

Relations between the CPA and Pretorius have since soured. Moreover, it would appear the person who signed the ‘loan’ agreement was not duly authorised by the CPA to do so. Both parties have taken each other to court. In May 2023, the High Court in Gauteng ruled that the 70% share transfer was void and that CPA was the rightful holder. The court ordered Pretorius to pay the CPA’s legal costs. Pretorius appealed the ruling, but it was dismissed with costs in January 2024.

Aggrieved, it is now reported to COSATU that Pretorius is now refusing to pay the 500 farmworkers their salaries and severance pay. There are also allegations that workers who sustained serious injuries on duty were not properly compensated and, in some instances, had medical costs deducted from their pay. Under Pretorius’ management the farm is alleged to not have complied with the Labour Relations Act.

COSATU’s sole interest in this matter is to ensure workers are paid every cent that is due to them and that they are treated as per the stipulations of the law. It is for this reason that the General Secretary will be meeting with the stakeholders on Thursday, 19 December.

Issued by COSATU

Solly Phetoe (COSATU General Secretary) 

Mobile: 082 304 4055

Zanele Sabela(COSATU National Spokesperson)

Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za