The South African Federation of Trade Unions (SAFTU) and the Food and Allied Workers Union (FAWU) rejects, in the strongest possible terms, the position taken by BAT South Africa (BATSA) that allowing retrenchments to proceed is in the “interests of employees’ wellbeing and procedural fairness.” This claim is not only morally indefensible but is based on misleading economic arguments that conceal the true financial position of the company.
- RETRENCHMENT CAN NEVER BE IN THE INTEREST OF WORKERS
BATSA argues that halting retrenchments would “prolong the process” and harm employees.
This is a dangerous inversion of reality:
• Retrenchment means loss of income, hunger, debt, and social collapse
• There is nothing “fair” about unemployment in a country with over 12 million unemployed
• Extending consultations is not harm, it is the only space in which alternatives can be found
The real harm is not consultation; it is job loss.
- BATSA IS HIDING BEHIND PROCEDURE TO AVOID ACCOUNTABILITY
BATSA relies heavily on the Section 189A process to justify its position.
But:
• Section 189A exists to avoid retrenchments, not to fast-track them
• Legal compliance does not equal fairness
• A procedurally “clean” retrenchment can still be economically unjustifiable and socially destructive
The company is using the law as a shield not as a tool for justice
- BATSA’S CLAIM OF “ECONOMIC STRAIN” IS FALSE, THE COMPANY IS HIGHLY PROFITABLE
BATSA attempts to justify the closure of the Heidelberg plant on the basis of declining volumes and illicit trade pressures.
FAWU’s research directly contradicts this narrative.
• The company is not in financial distress
• It is not facing collapse
• It is, in fact, more profitable than ever before
This is the critical point: This is not a crisis-driven retrenchment, it is a profit-driven restructuring
BATSA is:
• maximising profits by warehousing our economy to maintain super profitability
• Protecting shareholder returns at the expense of workers producing this wealth
• Shifting the burden of adjustment onto workers
- THE ILLICIT TRADE ARGUMENT IS BEING USED AS A PRETEXT
BATSA claims illicit trade has made the factory “unviable.”
But:
• Government has now introduced a SARS enforcement programme to tackle illicit cigarettes
• BATSA acknowledges these interventions
Yet:
• They refuse to pause retrenchments
• They refuse to assess the impact of enforcement
You cannot claim illicit trade is the problem, then refuse to wait when the solution is being implemented
This is not economic necessity, it is strategic opportunism
- THIS IS PART OF A BROADER DEINDUSTRIALISATION STRATEGY
What we are witnessing is a familiar pattern:
• Closure of local production
• Retention of import and distribution operations
• Transition to a “warehouse economy”
This has devastating consequences:
• Loss of industrial jobs
• Collapse of local value chains
• Increased dependence on imports
Workers are being sacrificed for a global corporate model that prioritises margins over livelihoods
- BATSA’S CLAIM OF “COMMITMENT TO SOUTH AFRICA” IS EMPTY
BATSA claims it remains committed to South Africa.
But:
• You do not demonstrate commitment by closing factories
• You do not show commitment by retrenching workers while profitable
• You do not show commitment by refusing even a short pause for engagement
Commitment requires investment, patience, and social responsibility, not exit and retrenchment
SAFTU calls on:
• Minister of Trade, Industry and Competition, Parks Tau
• Minister of Employment and Labour, Nomakhosazana Meth
to intervene immediately.
We demand:
1. Immediate halt to retrenchments
- Pending assessment of SARS enforcement impact
- Pending engagement on alternatives
2. Urgent high-level meeting - Government, BATSA, SAFTU, FAWU
- Within the next 48 hours
3. Full disclosure of BATSA financials
- To test the claim of “unviability”
- Including profit margins and production decisions
4. Exploration of alternatives
- Worker-led cooperative options, the DTIC must provide at least a minimum of R4 million rands for workers to research options to take over a company that they have built and made it a money spinner.
- Industrial policy interventions
- Volume recovery through enforcement
A statement was issued on behalf of SAFTU by the General Secretary, Zwelinzima Vavi.
For media inquiries,
contact the National Spokesperson at Newton Masuku
newtonm@saftu.org.za 0661682157
Media Officer
Asive Dyani
0719019564
