SOUR LABOUR RELATIONS AT ILLOVO SUGAR

Union rejects pay rise of 6.5%

SUGAR-PRODUCING giant Illovo Sugar faces strike action by employees who accuse the company of failing to sweeten their lives.

The Food and Allied Workers Union (Fawu), which said it represents more than 1 500 workers at the company’s eight KwaZuluNatal farms, is demanding a 9.5% across the board salary increase.

However, Fawu’s August Mbele said talks broke down yesterday after the company only offered a 6.5% raise which was rejected by the union.

The lowest paid employee gets R2 700. Mbele said they would now issue the company with a strike notice after consulting with the union’s lawyers.

He said they were already in possession of a strike certificate issued by the Commission for Conciliation, Mediation and Arbitration (CCMA) after the two parties failed to resolve their differences last month.

Fawu is also demanding that Illovo permanently employ those who have been working as casual labourers, establish a provident fund and pay a 40% bonus to nonpermanent workers.

The union also wants Illovo to offer R2 000 funeral assistance for each employee.

According to its profile, Illovo says it’s Africa’s biggest sugar producer with extensive agricultural and manufacturing operations in six African countries.

“The group produces raw and refined sugar for local, regional African, European Union (EU), United States of America (US) and world markets from sugar cane supplied by its own agricultural operations and independent outgrowers who supply cane to Illovo’s factories.”

Mbele said one of the contentious issues was that Illovo had approved a 6% raise for its management. However, the company had initially refused to offer its workers increases, saying it had not done well in the past financial year due to the drought.

In the financial year ended March 2015, the company made a profit of R601-million. However, this declined to R339-million in the year ended March 2016.

“The situation at present is that Illovo is still in negotiations with Fawu regarding the substantive conditions of employment for the 2016/17 season in our agricultural division, where we comply fully with the applicable sectorial conditions for farmworkers,” said spokeswoman Shannon Atherfold.

“The matter which Fawu raises was referred to the CCMA for mediation and both parties have agreed to meet outside of the CCMA forum to progress discussions. We respect the collective bargaining process as provided for in the employment legislation.”

“Illovo is still in negotiations with Fawu regarding the conditions of employment