The Ceres fruit region, and the South African fresh produce industry as a whole, has expressed its collective relief that the damaging strike by workers at leading Ceres apple and pear packer Ceres Fruit Growers (CFG) is finally over.
CFG announced this morning that it has reached a settlement with the labour union, Farm Food and Allied Workers Union (FAWU), that would bring the strike to an end. The industrial action started in early September after protracted wage discussions - which began in July - broke down. The six-week long strike resulted in street protests and intimidation, as well as damage to CFG property and property of other companies in the region.
Ceres Fruit Growers (CFG) managing director Francois Malan says that he is grateful and relieved that an agreement was reached last night (13 October) which puts an end to the crippling six weeks long strike action.
The strike brought all packing and shipment of fruit at CFG to a standstill and raised concerns that the action would spill over to other packers in the region and in the fruit industry. It came at a critical time of the season, when CFG was in its late-season packing programme for controlled atmosphere stored fruit.
Although there would not have been any damage to fruit in CA stores, six weeks of shipments have been lost and fruit already packed and ready for shipment had to wait in cold storage because it was not possible to load containers.
CFG has repeatedly stated that the final damage toll will only emerge once packing and marking operations are resumed, and the fruit reaches its intended markets.
“We acknowledge the pivotal role played by the CCMA Commissioners and the senior leadership of FAWU in forging this deal,” says Malan. “We have a big challenge to get our operations back on track and to get to work.
'Ceres workers are more than R7m poorer because of the unprotected strike and this action has also cost CFG and its growers about R10m,' he adds. 'We will assess the material damage caused to our business in due course, but more importantly, we need to re-establish a good working relationship with all our staff.”
CFG Chairman Pieter Graaff previously told Eurofruit that he was concerned about the impact of the strike on future relationships at the company.
“We are a close-knit community and families have been involved with our business for generations,' he said. 'The success of the company directly affects economic development and social well-being in the region.'
Fruit industry sources say there is relief at the announcement. In the run-up to next year’s South African government elections, it is expected that labour unions will flex their muscles in the Cape region, which is the only one of South Africa’s nine provinces which is not governed by an ANC majority. It is also expected that the outcome of the strike at CFG, and the package agreed, will be used in negotiations with other fruit packing concerns in the time ahead.
