PARMALAT SA IMPLEMENTS LOCK-OUT AT OPERATIONAL FACILITIES

28 June 2018

Parmalat SA (PSA) implemented a lock-out of employees who are FAWU-members on 27 June. The lockout is effective at some of PSA’s operational facilities and commenced at midday on Wednesday 27 June. 

It is directed at 75% of the approximately 900 FAWU members working for PSA. PSA employs a total workforce of approximately 2400 employees. The lock-out was implemented in response to the union’s decision to embark on a strike on the 27th after giving the company 48 hours’ notice.

This strike and consequent lock-out followed when a deadlock was reached after negotiations with the union over many weeks. The process included mediation by the CCMA. PSA has described the decision to strike as “disappointing given that the parties had previously, at FAWU’s request, agreed to meet again on 29 June”.

Chris Vermeulen, PSA’s Human Resource Executive, says the company has indicated its willingness throughout the negotiation process to move on its offer if FAWU did the same. “It’s also important to note that the notice to strike was issued without the ballot process being followed in line with FAWU’s own constitution.” He confirmed that PSA has implemented contingency plans to ensure the safety of its employees, contractors and visitors. “Unfortunately the strike has already been accompanied by a high level of intimidation, preventing employees from working or returning to work and there have been incidents of violence resulting in damage to property,” he added.

“Quality however remains our product focus and we have operational plans in place to ensure that product supply to our consumers and customers is not negatively affected.”

Vermeulen says PSA is aware of the financial hardship of some of their employees. “We presented FAWU with an offer which is fair and reasonable given the current economic conditions. It’s sad that the union’s decision to not accept the offer and to embark on industrial action on a ‘no work, no pay’ basis will worsen the hardship of employees even further.”

PSA indicated it will only allow union members back on its premises once the industrial action is officially and unconditionally ended and fully abandoned by FAWU. This is in accordance with standard labour relations practise and legislation.

*At the start of the negotiations between PSA and FAWU the union demanded a 12% increase plus numerous other demands. After weeks of negotiations their demand stood at 9% (on 27 June) with a number of remaining demands, while the company’s offer stood at 7.3% plus a once-off payment of R500. PSA describes the union’s remaining other demands (including monthly incentive bonuses of R1000) as “substantial” and says it cannot be agreed to.