PARMALAT STRIKE AND LOCK-OUT ENDS

06 July 2018

The lock-out at some of Parmalat SA’s (PSA) operational facilities has been terminated.

After protracted negotiations between PSA and FAWU, an agreement was reached on Friday, 6 July. This will see a return to work by all striking workers by Monday, 9 July. Chris Vermeulen, PSA’s Human Resource Executive, welcomed the agreement which he regards as a fair and reasonable outcome for both parties. The agreement provides for a 7.75% increase to employees at bargaining unit level.

The agreement ends the 9-day strike that had been accompanied by high levels of intimidation of non-striking workers and incidents of violence resulting in damage to property. Vermeulen lamented the fact that the strike occurred in the first place on a ‘no work, no pay’ basis, worsening the financial hardship of employees even further.

The strike and consequent lock-out followed when a deadlock was reached after negotiations between the parties took place over a number of weeks. PSA implemented the lock-out of less than 700 FAWU-members last week (on Wednesday, 27 June) after the union served PSA with notice of the strike on Monday, 26 June. PSA employs a total workforce of approximately 2400 employees.

Vermeulen said PSA successfully limited the impact of the strike through well-prepared contingency plans and the commitment of its non-striking workforce. Operational plans were in place to ensure that the safety of employees, contractors and customers was not negatively affected. The same applied to product supply to consumers and customers.