- April 29, 2009
- Posted by: admin
- Category: Historical Investments
Amid difficult economic conditions, the trade union Solidarity clinched victory in the consultation process for the planned retrenchment of more than 90 Clover employees at the company’s cheese factory in Wesselsbron.
Solidarity received a Section 189 notice early in March regarding the planned retrenchments at the branch which will be closing its doors shortly.
According to Jaco Kleynhans, Solidarity spokesperson, it was agreed that 31 employees would be transferred to Clover’s Lichtenburg factory to incorporate the production of Tussers and Gouda there.
“In addition, a good severance package was negotiated for employees. In terms of the agreement employees will receive a severance package of two weeks’ salary for every year of service.
“The severance package was agreed at a minimum of two full months’ salary,” Kleynhans explained.
Clover’s decision to close its Wesselsbron factory came about because the production of bulk cheese could no longer be done profitably at the plant. In addition, Clover believes that it must optimise its cheese factories in order to force costs down and to improve efficiency.
Employees who are transferred to the Lichtenburg factory will also receive a relocation allowance of 10% of their basic salary for a period of 12 months.
“The process, which was handled by the Commission for Conciliation, Mediation and Arbitration, had a positive outcome despite extremely difficult conditions.
“Clover succeeded in still retaining the expertise by means of the transfer process,” Kleynhans added