Coca-Cola SA plans closure of two plants
Coca-Cola Beverages South Africa (CCBSA) has confirmed that it is considering a restructuring plan that could see the closure of some of its facilities and the loss of hundreds of jobs.
The company, a subsidiary of Coca-Cola Beverages Africa, recently notified unions of its intentions, though it emphasized that consultations are still in progress and no final decision has been made.
According to the Food and Allied Workers Union (FAWU), which has already received formal notice, the company is proposing to shut down its Bloemfontein and East London plants, placing as many as 680 employees at risk.
That figure represents close to 9% of CCBSA’s South African workforce.
While the company says the move is driven by financial constraints and the need to adapt to shifting industry conditions, the union is not convinced.
FAWU argued that the retrenchments are less about survival and more about “realigning the business,” insisting that cleaning staff, who are among the most affected, play an essential role in food and beverage production.
Reports indicate that employees are being offered voluntary separation packages as an alternative to compulsory layoffs, but FAWU has labelled this unlawful, as it believes negotiations must be concluded before such offers can be made.
The union has vowed to challenge the process if necessary.
In a statement, CCBSA said: “In response to evolving industry dynamics, Coca-Cola Beverages South Africa intends to make adjustments to its organisation that, if implemented, may result in some roles being impacted and may unfortunately result in job losses. Our priority is to support affected colleagues with fairness, transparency, and compassion during this process.”
The possible retrenchments add to a growing list of multinational companies reducing their operations in South Africa.
Ford has announced it will shed nearly 500 jobs at two plants, Goodyear SA has cut around 900, and Glencore has issued notices that could see more than 3,000 workers affected in the mining sector.
