2000 workers at Lucky Star down tools to press against unilateral workplace changes at Oceana

Banele Ginidza

More than 2 000 permanent and contracted employees at the Lucky Star fish processing plant and its associated Amawandle Pelagic Fishing plant in the Western Cape have initiated an indefinite strike, protesting against what they describe as unilateral and unjust actions by their employer, Oceana Group.

The strike, which began on Tuesday before lunchtime, comes in response to Oceana's alleged withdrawal of a seasonal allowance previously granted to workers, replacing it with a 13th cheque that has been deemed inferior.

Dominique Martins, spokesperson for the Food and Allied Workers Union (Fawu) expressed that the workers' grievances stemmed from a series of detrimental moves by management that undermined union representation and workers' rights.

Martins said the union was also demanding the reinstatement of the full-time shop steward position, the reopening of the union office on-site, and the immediate restoration of the previously held seasonal allowance.

"Management has, without consultation or agreement, removed the full-time shop steward position and dismantled the designated union office at the workplace. This move represents a direct attack on organized labour and the ability of workers to be effectively represented in matters affecting their employment and welfare," Martins said.

"The union has exhausted all avenues for resolution, including formal engagement and conciliation processes. As a result, our members have no choice but to exercise their constitutional right to strike."

Given the protracted negotiations with management, Martins said Fawu members felt they had no option but to resort to their constitutional right to strike.

Oceana on Wednesday confirmed in a statement to Business Report that Fawu was granted a certificate to strike over the issue of a full-time shop steward position.

"All relevant parties were consulted throughout the review process of the full-time shop steward. The designated Fawu office at the company is still operational and the activities of Fawu are recognised," Oceana said.

"We are committed to food security and are doing our utmost to ensure there are no disruptions at the plant." 

Oceana has been grappling with declining share value, which has plunged by 24% in the year to date and by 27% over the past 12 months.

Investors have shown dwindling confidence in the fishing and food group, despite owning one of South Africa's most recognised food brands, Lucky Star.

Market analysts note that the company has struggled to articulate a successful international strategy that will deliver sustained long-term value.

The latest financial reports paint a concerning picture for Oceana. While the Lucky Star brand enjoyed a marked improvement in South African operations, it was unable to counterbalance declines elsewhere in the business.

It reported a staggering 43.9% decline in headline earnings per share due to a significant downturn in fish oil prices, a primary revenue driver for the company.

This sharp decline occurred as production levels for the Peruvian anchovy resource normalised, causing fish oil prices to plummet and severely impacting Oceana's financial performance.

Despite these challenges, Oceana’s revenue increased slightly, reaching R5.2 billion, bolstered by the Lucky Star brand's performance, which was propelled by heightened consumer demand and operational efficiencies achieved through significant investments in its South African operations.

However, the overall profit after tax decreased by 43.7% year-on-year, illustrating the struggles faced by the company.

While Lucky Star can point to a record volume of sales and enhanced margins due to cannery upgrades, it remains to be seen whether these gains will be sufficient to weather the storm created by their parent company's financial difficulties with the strike ongoing.

BUSINESS REPORT