Tongaat Hulett Troubles

[Binary_Bark]

The human impact of the huge financial meltdown faced by sugar giant Tongaat Hulett bit this week, when 210 families living in the company compound were told to pack their bags.

They are but a fraction of the 5 000 people who have been handed notice since the company, the largest employer on the North Coast, began stringent cutbacks to avoid financial disaster.
A general feeling of resignation was evident this week at the Maidstone Mill. The 210 workers living at the Tongaat compound have also been served with eviction notices to vacate their homes at the same time.

Farmworkers in the surrounding farms also face losing their jobs. However, workers with children attending local schools have been granted a reprieve in their eviction notice until the end of November to accommodate their children’s final term of exams and the completion of their school year.
The Courier visited Tongaat this week, where the company has its headquarters and spoke to the displaced workers at the mill and compound.

Many are still in shock and said they did not know what they were going to do.
Many of the workers have been with the company since leaving school and are facing insurmountable challenges as unemployment in a stagnant economy continues to challenge the region.
With South Africa’s 27.6 percent unemployment rate in the first quarter of 2019, an amount that equates to 6.2 million people unemployed, many of the workers face a bleak future.
A worker with 28 years of service spoke to the Courier on his eviction and Section 189 retrenchment notice, which is effective at the end of September.

“I have refused to sign the eviction letter as they have not given me enough time to look for other accommodation.
“As soon as my notice period ends at the end of September my family and I have to pack up and leave.

More At: https://northcoastcourier.co.za/138866/thousands-lose-jobs-month-end-tongaat-hulett/

 

[R13...]

Poor workers feeling the brunt of management's screw ups. Sad.

 

[Binary_Bark]

Poor workers feeling the brunt of management's screw-ups. Sad.

Jip, I was one of the unfortunate ones for the first wave at the beginning of this year

 

[Matt91]

Poor workers feeling the brunt of management's ANC's screw ups. Sad.

FTFY

 

[Binary_Bark]

FTFY

He is actually right

 

[BBSA]

Poor workers feeling the brunt of management's screw ups. Sad.

Was this management's fault?

Industry experts have claimed that the sugar market has been in crisis for more than 10 years now, and in South Africa specifically, sugar production has dropped by around a third between 2002 and 2012.

 

[Matt91]

He is actually right

I don't disagree that management did play a huge part in this, but what I'm saying is that the stagnant economy and lack of opportunities is solely the fault of the ANC. The poor workers have no opportunities elsewhere because of the state of this country thanks to the cANCer.

 

[TheChamp]

I don't disagree that management did play a huge part in this, but what I'm saying is that the stagnant economy and lack of opportunities is solely the fault of the ANC. The poor workers have no opportunities elsewhere because of the state of this country thanks to the cANCer.

There wasn't any need to fix his comment then, you should have made yours separately. It wasn't broken, by your own admission.

 

[Matt91]

There wasn't any need to fix his comment then, you should have made yours separately. It wasn't broken, by your own admission.

I'm not talking about the state of the company, I'm talking about the poor workers who have no options or opportunities since being dismissed from their jobs.

 

[R13...]

Was this management's fault?

No, but Tongaat's problems are enronomics related rather than the macroeconomic environment.

 

[Ninja'd]

If we're gonna point fingers all willy-nilly then I'm gonna blame the unions. I don't know what they did but I bet it's their fault.

 

[WaxLyrical]

Could this be related to sugar cut backs and sugar tax?

 

[Solitude]

Could this be related to sugar cut backs and sugar tax?

I just wanted to post that. I wonder if sugar tax helped cause this.

 

[R13...]

I just wanted to post that. I wonder if sugar tax helped cause this.

Maybe but mainly because:

Tongaat Hulett’s share price has plummeted more than 75% since the beginning of the year and stood at R13.21 when it suspended trading on the JSE on June 10. This came in the wake of the group’s Sens announcement on May 31 that it would have to restate its equity by between R3.5 billion and R4.5 billion.

Its developments division has come under scrutiny as the company continues with its group-wide “strategic and financial review” which has seen it institute a forensic investigation into its operations and financials.

 

[Cray]

FTFY

Sugar tax has hit hard but if a company has to restate its prior-year earnings then it's a sign that all is not well in top management...

 

[The Darkness]

I just wanted to post that. I wonder if sugar tax helped cause this.

I doubt it. Sugar sells itself. It's hugely addictive. This was a management issue. These workers will now learn first hand just how much the government will help out here....and maybe next time, vote better

 

[flippakitten]

Jip, I was one of the unfortunate ones for the first wave at the beginning of this year

Would be interesting to hear your point of view on this and why it's management's fault?

 

[Cray]

https://www.businessinsider.co.za/t...nancial-results-2018-pwc-investigation-2019-6

“What’s happening at Tongaat is crazy,” one wealth manager told Business Insider South Africa. “Let’s be optimistic that it’s ‘just’ gross mismanagement, and not another Steinhoff. For now, we don’t have enough information.”

Jesus.....

 

[Binary_Bark]

Would be interesting to hear your point of view on this and why it's management's fault?

This is mostly the fault of upper management, yes the sugar tax did not help.
But the over estimation of profits had the company spend more money than it actually had, thus now leading to people being laid off and other assets being sold to try and get back some funds.

 

[LD50]

Jip, I was one of the unfortunate ones for the first wave at the beginning of this year

Shame man, were your able to find employment soon after?