Mmoloki Cwaile, who is still a member of the North West Legislature (MPL), said this ahead of the tabling of the province’s adjustment budget for 2021/22 on Tuesday. Cwaile says Clover’s decision was strictly business-related and not driven by service delivery challenges, mentioning the recent breakdown in relations between Clover employees and the employer over restructuring measures at a national level as evidence of this. Clover employees are now on strike over the dairy giant’s recent decisions to slash R300 million in labour costs via retrenchments and pay cuts. Cwaile says this is proof Clover was being dishonest when blaming their decision to close the Lichtenburg factory on the financially challenged Ditsobotla Local Municipality.

Cwaile says the dairy giant’s management is shrewd and ruthless in their approach, knowing very well that their sole intention is to cut down their salary bill. Milco SA, which is owned in the majority by the Israeli Central Bottling Company, purchased Clover in 2019, in a merger that was greenlit by the Competition Commission. 

However, the merger was approved on the condition that “the merged entity shall not retrench any employee in South Africa as a result of the merger. This undertaking does not extend to, inter alia, voluntary separation arrangements, voluntary early retirement packages and the retrenchments arising from the completion of Project Sencillo, as discussed above”.

READ MORE: Tribunal approves Milco, Clover merger after merging parties improve conditions  

Cwaile says Clover has now ignored this part of the Commission’s instruction.  

Clover previously confirmed to OFM News exclusively that it has decided to close down its Frankfort facility, but stresses the decision was made several years ago as a part of ongoing efforts to simplify the business and optimise operations. Despite this, the facility remains open presently and the timelines for its closure “are fluid and have not been finalised”. The article came as Lichtenburg residents were still reeling from the news that the dairy giant was moving to Queensburgh near Durban in KwaZulu-Natal. Agricultural economist at the North West University (NWU), Johnny van der Merwe, said the dairy company’s departure from Lichtenburg will have a knock-on effect on the economy of the town and may mark the beginning of a mass exodus of big name companies from the area. The dairy giant also was in the process of auctioning off its processing facility in Parow, Cape Town, at the end of June 2021.

Clover cancels Christmas to punish striking workers

OFM News