The Congress of South African Trade Unions (COSATU) in the Western Cape is deeply shocked and outraged by the latest developments at Premier Foods. As the company prepares to close its Tulbagh fruit canning plant, putting thousands of jobs at risk, its CEO, Kobus Gertenbach, is set for a massive R17.4 million bonus, bringing his total remuneration to R26.1 million for the 2026 financial year, an increase from R22.7 million the previous year.

This bizarre display of greed prioritises executive wealth over the livelihoods of workers and the economic survival of the Tulbagh community. While the CEO is rewarded with a record payout for the company’s strong financial performance and the completion of the R6.5 billion acquisition of RFG Holdings, workers and producers are being abandoned.

The proposed closure of the Fruits Products Western Cape (FPWC) plant in Tulbagh will devastate the Region. It threatens approximately 3,500 permanent and seasonal factory jobs, over 2,000 permanent farm workers, and the livelihood of around 200 commercial producers and their suppliers. The plant processes up to 60,000 tons of fruit annually and purchases R300 million worth of produce from local farmers.

To add insult to injury, Premier has indicated it will not honour existing three-year supply contracts with producers, leaving them stranded with fruit for the upcoming season after they had invested heavily in preparation. While the Company blames structural challenges and declining global demand, COSATU sees this decision as a direct consequence of a merger driven cost cutting exercise that disregards commitments made to protect jobs.

This comes as the Competition Commission investigates whether the closure breaches merger conditions attached to Premier’s acquisition of RFG, where Premier undertook not to retrench employees as a result of the merger for three years.

It is an absolute disgrace that Premier Foods can reward its CEO with a R17.4 million bonus while simultaneously throwing thousands of workers and their families onto the street.

This is not a story about economic sustainability. It is a story of corporate greed. The Tulbagh plant is being sacrificed to boost executive bonuses and shareholder returns. We call on Premier Foods to immediately halt the Section 189 consultation process, honour its contracts with producers, and find a sustainable solution for the Tulbagh plant. We stand with the workers, the farmers, and the entire community in opposing this heartless decision.

COSATU warns that should Premier Foods fail to comply with these demands and continue with the Section 189 consultation process with the intention of closure, we will have no other option but to:

•  Organise mass community protests to defend jobs and livelihoods, and

•   File an urgent court interdict to halt this reckless process.

Workers and communities will not stand idly by while a profitable company abandons its commitments and destroys lives. The time for dialogue is now.

COSATU Western Cape will be engaging with all stakeholders, including Government and the Competition Commission, to ensure that this reckless decision is reversed and that the interests of workers and local Communities are placed ahead of obscene executive pay.

Issued by COSATU Western Cape

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Malvern De Bruyn on 060 977 9027Motlatsi Tsubane on 074 482 618