But Cosatu said yesterday that Ben Burger's resignation was "not enough of an apology", claiming that Burger would benefit from the company because he was a major shareholder.
Burger, the CEO and a director of Falcon Security, was arrested following the incident, in which a racist version of the national anthem was played at a company fun day last month. Burger was released but he then fired his employee, Francois Robberts, who was alleged to have played the CD.
The security company has been contracted to Sun City for 14 years.
Cosatu rejected the company's apologies and last Saturday nearly shut down Sun City by striking. Most restaurants in the resort were closed as employees handed over a memorandum of their demands to the resort's management.
Burger said yesterday: "It has become clear to me that, particularly from the labour union's side, I am regarded to be part of the problem."
North West Cosatu spokesman Solly Phetoe said the federation "would only be happy" if the company's Sun City contract was terminated.
Phetoe said that Falcon Security was run by "people who do not respect human dignity".
"If he [Burger] resigns he's going to run the company [from] outside," said Phetoe. "Mr Burger [has] got 75% of the shares".
Falcon Security said yesterday "the incident has caused the company immeasurable damage".
Sun International had not responded to queries by The Times at the time of going to press.
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