Embattled chicken producer, Daybreak Farms, hit another stumbling block as workers have downed tools since Tuesday, 20 December 2022. Daybreak employees affiliated with the recognised trade union, the Food and Allied Workers Union (FAWU), are demanding a 33.3% wage increase, but the company is offering them 7%. One of the employees involved in organising the strike, who spoke on condition of anonymity, said that while this looks like an unreasonable demand in percentage terms, they are asking for R2 000 a month to top up their current salaries of R6 000. "The company is only offering a R420 increase for two years," he said.The employee said staff in Daybreak sites had joined the strike, but the chicken producer had hired casual workers from the communities in which it operates."These negotiations started three months ago ... but up until today, the company has been saying 'we are not going to give you anything other than the 7%,'" he said. The workers met with Daybreak Farms Acting CEO, Jack Nkogatse, recently. They allege that he wanted to prevent the strike but had to go back to negotiate their salary demands with the board and shareholders. After waiting for his feedback, the employee said they saw no other way out but to embark on a strike, days before Christmas, to try to secure a living wage for themselves and their families. Nkogatse said the company convened seven sittings to negotiate with the workers, including a deliberation at the Commission for Conciliation, Mediation, and Arbitration (CCMA). The company is still offering a 7% increase for 17 months, beginning November 2022 to March 2024. Its offer also includes a 13th cheque in 2022 and a guaranteed 13th cheque for the 2023 financial year. Nkogatse said 77% of the workforce has already accepted this offer. "As a business, Daybreak Farms has various unions that our employees are affiliated to, and at this stage, we cannot confirm the union affiliation of the strikers. What we can confirm is that some of our employees are picketing at our sites," he said. Nkogatse said operations have been affected, although he couldn't yet quantify the magnitude of Daybreak Farms’ loss caused by the strike. The state-owned Daybreak Farms describes itself as one of the largest integrated poultry producers in SA. It supplies a wide range of poultry products from in four provinces and employs about 3 000 workers. It slaughters over a million birds a week. It is wholly owned by the Public Investment Corporation, which spent R1.175 billion to buy out the poultry producer - then known as AFGRI Poultry - in May 2015. Nkogatse urged unions to encourage their members to accept the offer on the table. "We, as the employer, continue to be available for engagements necessary to return operations to normality. The business thus remains hopeful for progressive outcomes should the unions avail themselves for further engagements.”   To what extent is the tripartite relationship evident to the above? Discuss.

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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Chapter9: Decision Making Under Uncertainty
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Embattled chicken producer, Daybreak Farms, hit another stumbling block as workers have downed tools since Tuesday, 20 December 2022. Daybreak employees affiliated with the recognised trade union, the Food and Allied Workers Union (FAWU), are demanding a 33.3% wage increase, but the company is offering them 7%.

One of the employees involved in organising the strike, who spoke on condition of anonymity, said that while this looks like an unreasonable demand in percentage terms, they are asking for R2 000 a month to top up their current salaries of R6 000.

"The company is only offering a R420 increase for two years," he said.
The employee said staff in Daybreak sites had joined the strike, but the chicken producer had hired casual workers from

the communities in which it operates.
"These negotiations started three months ago ... but up until today, the company has been saying 'we are not going to

give you anything other than the 7%,'" he said.

The workers met with Daybreak Farms Acting CEO, Jack Nkogatse, recently. They allege that he wanted to prevent the strike but had to go back to negotiate their salary demands with the board and shareholders. After waiting for his feedback, the employee said they saw no other way out but to embark on a strike, days before Christmas, to try to secure a living wage for themselves and their families.

Nkogatse said the company convened seven sittings to negotiate with the workers, including a deliberation at the Commission for Conciliation, Mediation, and Arbitration (CCMA). The company is still offering a 7% increase for 17 months, beginning November 2022 to March 2024. Its offer also includes a 13th cheque in 2022 and a guaranteed 13th cheque for the 2023 financial year. Nkogatse said 77% of the workforce has already accepted this offer.

"As a business, Daybreak Farms has various unions that our employees are affiliated to, and at this stage, we cannot confirm the union affiliation of the strikers. What we can confirm is that some of our employees are picketing at our sites," he said.

Nkogatse said operations have been affected, although he couldn't yet quantify the magnitude of Daybreak Farms’ loss caused by the strike.

The state-owned Daybreak Farms describes itself as one of the largest integrated poultry producers in SA. It supplies a wide range of poultry products from in four provinces and employs about 3 000 workers. It slaughters over a million birds a week.

It is wholly owned by the Public Investment Corporation, which spent R1.175 billion to buy out the poultry producer - then known as AFGRI Poultry - in May 2015.

Nkogatse urged unions to encourage their members to accept the offer on the table. "We, as the employer, continue to be available for engagements necessary to return operations to normality. The business thus remains hopeful for progressive outcomes should the unions avail themselves for further engagements.”

 

To what extent is the tripartite relationship evident to the above? Discuss.

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