A union representing striking workers at a sweets factory of Premier FMCG have made new claims against the South Africa-based food company.

The Simunye Workers Forum (SWF) suggested workers who remain on strike at the plant in Germiston, which produces the Mister Sweet confectionery brand, have been offered repayable loans to encourage them to return to work.

Among the new claims, SWF said Premier FMCG is offering casual workers brought in to keep the site running more money than permanent staff, many of whom are still out on strike in demands for a minimum wage and a pay increase. It suggested the company is also interviewing for permanent posts and is threatening to deny striking workers access to pension funds.

Asked to comment on the fresh allegations made by the SWF amid the more than two-month-old strike, Premier FMCG issued a statement repeating many of its past comments.

“Over the past few weeks, many employees have returned to work after engaging with the company,” Premier FMCG reiterated.

“Following the introduction of the two-pot pension scheme, all employees have access to their funds, which are managed by Sanlam Provident Fund. Employees are able to apply directly to the service provider should they wish to make use of these funds.

“To date, 280 employees from the site, including striking and non-striking employees, have applied to access their funds.”

A spokesperson for Premier FMCG confirmed the system allows workers to withdraw some funds before retirement, while leaving a portion in the pot.

Premier FMCG added in its statement that it “continues to operate with the balance of skilled employees supplemented by temporary staff”.

SWF claims the latest negotiations with Premier FMCG collapsed last Thursday (24 October) after the company “refused to negotiate with the workers' chosen union, the Simunye Workers Forum”, adding that the move is “unconstitutional and a breach of the inalienable right to freedom of association”.

Meanwhile, Premier FMCG suggested the SWF is not a recognised union and the Commission for Conciliation, Mediation and Arbitration (CCMA) has therefore said the company does not have to engage.

“An employee forum, which is not a recognised union as per labour regulations, has issued wage demands on the company on behalf of some employees,” Premier said in its statement.

“The CCMA ruled that the company is not obligated to engage with a non-recognised union.”

Premier confirmed via the spokesperson that the SWF is the union in question.

“Throughout multiple CCMA hearings, SWF has consistently been denied representation due to not being registered as either a recognised union or a law firm, a prerequisite established well before the related dispute led to a strike,” Premier explained.

Before the strike action started in August, Premier FMCG said workers were offered – via another union, the UCIMESHAWU – an “above” inflation 7% pay increase in April backdated to January, accepted by some but rejected by others.

The original demands were for a basic salary of R19,500 ($1,104) a month and a rise of R15 an hour for staff already on that pay level.

“Whilst this was accepted by the majority, some employees rejected the increase,” Premier said in its latest statement, noting that for the remainder, “the matter was referred to the CCMA by employee representatives and no agreement was reached”.

Premier FMCG repeated the numbers previously provided that 385 of the total 602 Germiston workforce had taken part in the strike.

The spokesperson explained that the 385 staff that took strike action were represented by SWF, while those that did not strike, and accepted the 7% pay increase, were under the UCIMESHAWU.

Some 58 employees have now returned to work, leaving 327 still on strike. 

SWF also claimed another casual worker had been injured at the factory, “brought in to operate complex equipment - the wrapping machine – without adequate training from the Mister Sweet bosses”.

In terms of the injured workers, the Premier FMCG spokesperson said it involved three casual employees, two of whom were reported to the Department of Labour, which, following plant inspections, “ruled that the health and safety training was sufficient in both instances”.

The company denied it was paying casual workers more than permanent staff and has also offered striking employees "temporary financial support for transport and essentials without undermining the strike", referring to the SWF's loan claims.

Premier FMCG also said, via the spokesperson, that "no temporary employees have been offered permanent positions in place of striking" workers.

SWF added: “Factories in post-apartheid South Africa that make tens of millions of rand in profit every year cannot continue to be allowed to operate like Mister Sweet, paying workers just R6,000 per month even after ten years.”

Premier FMCG responded in its statement: “Premier is committed to the fair treatment of all employees and maintains standard rates of pay for similar work across its workforce, including permanent and temporary employees.”