Tongaat Hulett workers set to be paid December salaries and 13th cheque

Despite its financial struggles, Tongaat Hulett will pay its workers their December salaries including a 13th pay cheque.

Local publications posted that the workers at Tongaat Hulett, which is in business rescue, will receive their December salaries and 13th cheques following a business rescue consultation last week, according to trade union UASA.

UASA spokesperson Abigail Moyo it is pleasing that the company managed to secure money for salaries but they are still concerned about the company.

“While it is pleasing that the company managed to secure money for salaries and 13th cheques, its financial state remains of concern,” Moyo said in a statement.

According to reports last month, Tongaat Hulett needed R1.5 billion to service roughly R6.3bn in debt and to continue its sugar milling season.

Independent Media Online has it that the sugar maker, Tongaat Hulett, announced measures to boost its sugar and animal feed production, which included: crushing all available cane by returning raw mills to optimal performance; continuing to invest in Tongaat Hulett’s white sugar premium brand; increasing raw and refined sugar produced by focusing on mill reliability and recoveries, among others.

The KwaZulu-Natal-based company also planned to prioritise resources for planning and execution of annual off-crop maintenance; address critical repairs; focus on ongoing refinery yield improvements.

Just last week, BusinessTech Africa reported that a consortium of all Tongaat Hulett-supplying growers announced that they wanted to buy the ailing business.

The group said in a statement circulated on Tuesday that it is stepping up to secure the sustainability of farming businesses connected to Tongaat’s operations in the North Coast of KwaZulu-Natal.

According to Simon Cleasby, a spokesman for NewCo, he said the proposal is for the acquisition of assets, including the operating mills at Maidstone, Amatikulu, and Felixton,

“This includes the shuttered factory at Darnall, the Huletts Refinery, Voermol animal feeds (sic), and all related brands and trademarks,” Cleasby said.

“The proposal is for the acquisition of assets including the operating mills at Maidstone, Amatikulu, and Felixton, the mothballed factory at Darnall, the Huletts Refinery, Voermol animal feeds (sic), and all associated brands and trademarks.”

Meanwhile, this website has gathered that a meeting of shareholders in respect of the remuneration of the business rescue practitioners of the company is to be convened virtually on Friday.