Cosatu says RCL using spat to open retrenchment talks
JSE-listed RCL blames chicken imports and the drought on its decision to start retrenchments
IN KWAZULU-Natal, Cosatu has accused JSE-listed company RCL Foods of taking advantage of the spat between the trade union federation and former affiliate Food and Allied Workers Union (Fawu) by initiating talks about retrenchments. However, RCL has cited the effects of chicken imports and drought on its operations as the reason behind its decision to initiate a retrenchment process that could affect up to 1,500 workers. RCL Foods, which owns Rainbow Chicken, said on Tuesday that it was looking to restructure its commodity chicken category in response to current market conditions. The company said operating conditions have deteriorated as a result of the increased level of dumped chicken products in the market. On average, 27,500 tonnes of chicken imports enter SA monthly, a 43% spike from 2015. RCL Foods confirmed it has started consultations with all affected employees and unions. "Once this has been concluded, RCL Foods will assess the impact on job numbers," the company said. How...
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