Solidarity warns: Tulbagh factory closure could cause social disaster

The possible closure of the Premier Fruit Products Western Cape (FPWC) canning factory in Tulbagh could turn into a serious social tragedy if a solution is not found in time to ensure the factory’s survival.

According to Gideon du Plessis, General Secretary at Solidarity, Solidarity is the majority union at FPWC and will work actively and constructively with all role players, especially the employer, to save the factory from closure.

“Our goal is not only to protect the 424 jobs, but also the thousands of downstream and indirect jobs that depend on the factory. Above all, we want to prevent thousands of families, who depend on these breadwinners, from being plunged into poverty and uncertainty.”

Various lawsuits and other legal processes are currently being explored to prevent the possible closure of the canning factory. However, because FPWC exports a large portion of its canned fruit to international markets, the company’s sustainability is also affected by global economic and geopolitical developments. The decline in global consumption of canned fruit, coupled with US import tariffs, has had a significant negative impact on the company’s competitiveness and sustainability.

Du Plessis believes that, in addition to the existing import tariff of 15%, the United States of America introduced a further 30% tariff in April 2025, followed by an additional tariff of 12,5% ​​on agricultural products.

“These tariffs, together with the uncertainty about the continuation of the African Growth and Opportunity Act (AGOA) after 31 December 2026, are placing the entire South African canned fruit industry under immense pressure. This is making local exporters increasingly uncompetitive compared with countries that are not exposed to similar tariffs.”

Du Plessis stresses that solutions must be found urgently and that all role players should investigate every possible alternative.

“However, the most immediate and effective solution would be a political one, namely the conclusion of a trade agreement between the South African government and the US that removes the punitive levies on South African exports.”

According to Du Plessis, the official consultation process, facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA) regarding the possible closure of FPWC’s Tulbagh canning factory, will commence on 6 August.

“During the first consultation, the employer will share the necessary information with the unions, enabling us to make informed decisions and to propose and explore feasible alternatives and initiatives.

“Solidarity will do everything in its power to prevent the closure of the factory, thereby averting a human tragedy for hundreds of employees, their families and the wider Tulbagh community.”