Macadamia project deadlock a tough nut to crack for Mashatile
● Deputy president set to visit R164m Ncera operation this week in attempt to end wage dispute
So dire is the situation at the R164m Ncera Macadamia Farming Project that Deputy President Paul Mashatile is set to visit the operation this week in an attempt to resolve a deadlock that has left staff in limbo after working for months without pay.
About 150 workers at the project near East London downed tools in February, after they were told in November there were no funds to pay their wages that month or the next.
They have not returned to work since.
“The provincial government then injected about R3m, which was budgeted to pay us, as we were not paid since November,” Mbulelo Ntlebi, one of the workers, said.
“The amount mentioned above was meant to pay up all of the months that were missed, but we were only paid four months out of seven.”
The R3m cash injection paid the workers’ salaries for November until February this year.
They earn about R4,500 a month each.
“There were operations that were maintained using this money. It was stated by government if there were [to be] any changes on how the funds were used, there must be a meeting with all the representatives of [the project], including the union and shop stewards.”
Ntlebi said the workers had proposed an agreement in terms of which five months’ worth of salaries would be paid, until March, but they were told by management that technical problems with the payroll licence that processed the salaries meant this could not happen.
“On Tuesday, there is a general meeting where we will be discussing and coming up with solutions on how [the project] will pay the remaining [three] months that are in arrears.
“There are also outstanding bonuses of 2021 and 2022.
“Our bosses expect us to report back to work, but nothing has been said about our salaries that still need to be paid.”
Board chair Joe Jongolo denied claims that salaries had not been paid. He accepted that there had been a delay in payments but said that backdated wages, including for last month, had now been paid.
However, Jongolo said the protesting workers had not worked since February and were not owed money, though they were still on the books.
“We have negotiated a R13.3m advance from government and have already received R3m. This alleviates cash flow concerns.”
Jongolo said the industry had been hit by several problems and staff failing to report for work — effectively striking — was simply making the problem worse.
“This wage war is not helping anyone,” he said.
“On Friday, the [deputy] president, Paul Mashatile, is set to visit the area and will be at our farm.”
A news team visited the farm, which comprises hundreds of hectares.
Though the gates were locked, the surrounding fencing is in a poor state, allowing for easy access.
Overgrown grass covers the fallen nuts, which should have been harvested by about now.
Ntlebi has been working at the project since its inception in 2006.
He said the harvesting of the nuts began in 2013, but from the outset wages were not always paid on time.
“Different government stakeholders, including the |office of the premier, have been trying to find solutions for the problem, but nothing has materialised,” he said.
Eastern Cape rural development and agrarian reform spokesperson Masiza Mazizi said the government had invested R164m in the macadamia nut project since its inception.
“It is quite clear that the business model must be reviewed to identify inefficiencies, build capacity and the resilience that is required in the export markets.”
The department was engaging with development finance institutions and other government departments to solicit support for the project.
The project is run by the Vulindlela Investment Trust (VIT), which has a 51% stake, and East Cape Macadamia (49%).
Jongolo and VIT chair Ntozakhe Makhuzeni both admitted the project was beset by financial difficulties.
“These are caused by historical challenges in the project. These started four years ago, when government grants stopped before the project could break even,” Jongolo said.
About 90% of the nuts produced on the farm have been exported to markets in the US, Russia and China.