Daily Dispatch

Anti-EU chicken demo

- By ANN CROTTY

WORKERS and executives from the poultry industry will head back to the Pretoria offices of the European Commission tomorrow to protest against the destructio­n of the local industry by what they say is the dumping of chicken portions from the EU.

Following a similar demonstrat­ion in December, 1 000 workers, managers and shareholde­rs are expected to march again on the EU’s offices to protest against the thousands of jobs being lost.

“We’re holding them responsibl­e for the loss of the 1 350 jobs axed by Rainbow last week,” one prospectiv­e protester said.

The march will be under the banner of the Food and Allied Workers Union (Fawu) but management representa­tives from the four major poultry companies – Rainbow, Astral, Country Bird and Sovereign Foods – are expected to participat­e in the march.

Fawu general secretary Katishi Masemola said they wanted to assure workers that they were not forgotten.

They were also hoping to make ordinary European citizens aware of the damage caused by their exports.

Tension has been growing between the EU and SA in recent months and escalated in December when the Department of Trade and Industry slapped a “safeguard duty” of 13.9% on frozen chicken legs imported from the EU.

The duty, which will apply until early July, was imposed on the recommenda­tion of the Internatio­nal Trade Administra­tion Commission.

The local industry is calling for a 37% duty and has described the 13.7% duty as inadequate.

The EU and local importers said they would challenge the department’s decision on technical grounds relating to the terms of the free trade agreement between the EU and SA.

Earlier in January, EU Trade Commission­er Cecilia Malmstrom rebuked Trade and Industry Minister Rob Davies for the decision on the safeguard duty, suggesting it had not followed proper procedures.

Malmstrom also expressed reservatio­ns about the effectiven­ess of the import duty.

“It appears that the real problems of the South African poultry industry [are] not so much caused by the imports from the EU, but that it is suffering from structural problems affecting its competitiv­eness,” Malmstrom said.

Local industry players are adamant that they are significan­tly more competitiv­e than producers in the EU.

“Their cost of production is significan­tly higher than ours even though they receive subsidies,” Country Bird chief executive Marthinus Stander, who will be participat­ing in the march said.

Hardin Ratshisusu, deputy commission­er of the Competitio­n Commission, has called for a constructi­ve and collaborat­ive long-term approach to the difficulti­es facing the industry.

He said a 20% increase in prices over the past 12 months, despite the increase in imports, was a sign that the local industry was losing its competitiv­eness.

Katishi said the task team set up by the government, workers and business had to ensure any relief from imports would not be used to hike prices and profits. — TMG

 ?? Picture: HETTY ZANTMAN ?? IN DEFENCE: Katishi Masemola, general secretary of Fawu, hopes to make ordinary EU citizens aware of the damage to the sector
Picture: HETTY ZANTMAN IN DEFENCE: Katishi Masemola, general secretary of Fawu, hopes to make ordinary EU citizens aware of the damage to the sector

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