adminSUGAR processor, Starafrica Corporation has shelved plans to retrench workers citing inadequate funds to carry out the exercise.
The company wrote notices of retrenchment late last year to the National Employment Council for the Food and Allied Industries and to the Retrenchment Board.
It had intended to lay off about 100 workers at Country Choice Foods and Gold Star Sugars following a plant and equipment upgrade which resulted in the company requiring less manpower levels.
But, in letters to affected employees seen by NewZiana, the company said it had reversed its earlier decision.
“Kindly be advised that the Minister of labour approved the retrenchment of yourself and other affected employees with effect from 31 March 2015 on retrenchment packages that the company cannot afford in light of its debilitating financial position,” read part of the letter.
“Consequent thereof, the company has shelved the retrenchment.”
Starafrica, the only sugar refinery in the country, has been facing financial and operational challenges over the past couple of years due to old and inefficient equipment at its factory.
However, last year the company received about $5,3 million from the National Social Security Authority which it used to acquire new sugar processing equipment as part of strategies to streamline and return the business to viability.
Following the upgrade, Starafrica reported that it had increased its capacity to 600 tonnes per day.
To adequately feed the market, the sugar processer requires between 1,500 tonnes and 2,000 tonnes of raw sugar per week.
Most of it comes from Tongaat’s Triangle and Hippo Valley operations. — New Ziana
Online Reporter