The Congress of South African Trade Unions (COSATU) and its Affiliate representing workers at Daybreak Foods, the Southern African Clothing and Textile Workers’ Union (SACTWU), are disturbed by the multiple and extremely worrying crises at Daybreak Foods. Workers have been forced to take to the streets recently over unpaid salaries whilst management of the poultry producer has been silent and reports now indicate some have abandoned their responsibilities and resigned.
Workers have reported the company has defaulted on salaries, going as far as refusing to provide relevant documentation for workers to apply for the Unemployment Insurance Fund (UIF). The crisis we are witnessing has been ongoing not only for the past few months but for years. Daybreak and its employees have been subjected to systemic failures by several iterations of management. The company has seemingly been unable to turn its finances around despite successfully acquiring capital from the PIC.
There is no room for blame shifting while workers’ salaries are unpaid. Workers cannot be offered impersonal explanations that will not put food on the table nor pay their living expenses. Urgent intervention is needed to attend to their salaries, UIF and Compensation Funds.
COSATU is seeking urgent measures by the PIC as sole owner of Daybreak, as well as the investment fund manager of workers’ funds. The situation is intolerable and must be dealt with, not only to resolve the immediate crisis but also to ensure the company is placed on a sustainable path long term.
The response provided by the PIC does not hold water as Daybreak and the PIC as investors are guided by the Department of Employment and Labour’s investment principles. The Department has also affirmed its position, expecting both parties to protect investments made on behalf of workers, ensuring that they align with the department’s policies which seek to generate sustainable, long-term returns. Investee companies are also expected to maximise operations, maintain financial stability and practice good governance.
COSATU expects the Department of Employment and Labour’s to intervene and ensure with the PIC that these crises are dealt with as a matter of the highest urgency. The Federation demands that workers’ interests be prioritised and that a solution be found urgently.
Issued by COSATU
Zanele Sabela (National Spokesperson)
Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za