Chicken imports and the drought are biting into the poultry sector - and as many as 1,200 jobs might soon be shed.
The country's second-largest chicken producer, RCL Foods - which owns Rainbow Chicken - plans to restructure its "commodity chicken" operation in response to market conditions.
It said the market had been hit by increasing levels of "dumped" chicken products. On average 27500t of chicken imports come into the country every month, a 43% increase on last year.
RCL said it was in talks with employees and unions.
Union federation Cosatu yesterday accused RCL Foods of taking advantage of disputes between the Food and Allied Workers' Union and itself by initiating restructuring talks. It said about 1,200 workers would be affected.
Rainbow Chicken workers are organised under Fawu, now an independent union after cutting ties with Cosatu. Fawu's organiser in KwaZulu-Natal, August Mbhele, said RCL Foods had announced a restructuring but no section 189 process had started. He was surprised Cosatu had issued a statement on behalf of workers who are no longer affiliated to it.
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