Da Gama fires hundreds amid Covid relief delay crisis

Government’s failure to timeously pay hard-pressed businesses Covid-19 pandemic relief money has caused massive fallout in Buffalo City, with Da Gama Textiles firing hundreds of workers who embarked on an illegal strike to push for the payment of the funds.

In total, Da Gama has dismissed 538 workers, all members of the SA Clothing and Textile Workers’ Union, saying this week it only had about one week before the point of no return was reached.

The union has acknowledged the UIF Temporary Employee Relief Scheme (Ters) payments were beyond the company’s control, but said workers were trying to provide for their families while facing real risks to their health and safety.

General secretary André Kriel said “the unique mixture of current events” required a higher level of tolerance from the company and that its intention to re-employ only some workers would lead to labour and community unrest.

However, the company ramped up its action against the former workers on Wednesday, alleging they were intimidating current workers including one worker who was told he “must be eliminated”. The business obtained a Bhisho high court order barring the former workers completely from the company premises and surrounding precinct in Zwelitsha.

The Ters fund was introduced by the department of labour to tide businesses over during the forced Covid-19 lockdown.

Da Gama and its employees have been in a heated standoff since early June, when workers embarked on an unprotected strike over non-payment of the Ters money.

Despite an agreement between management and workers on a return to work, a further strike broke out on June 30 and, when the company was unable to persuade workers to return to work, management started dismissal processes.

Chief executive officer Ryan Brent has said the strike threatened Da Gama’s sustainability. During the dispute, its daily turnover dropped from R2m to R500,000. Currently, it “probably has only about another week or so left of not operating before the point of no return would arrive”.

He dismissed the union’s view that the company should wait and consider solutions.

“Unfortunately, circumstances facing the company are such that we do not have the luxury of sitting back and waiting. The company must commence recruitment with a view to ensuring its sustainability.”

Da Gama currently has 130 monthly salary earning or “non-bargaining union” staff who were not involved in the strike action, but who do not earn any income due to the no work-no pay principle.

While former employees may re-apply for their positions, the company said there were now only 460 “meaningful positions” available.

Kriel said it was unfortunate that all employees had been treated in the same way and dismissed, and urged Da Gama to reinstate all the dismissed workers.

The former workers have been interdicted from harassing and interfering with other employees, clients or members of the public, damaging the company’s property, and inciting or attempting to incite others to act contrary to the terms of the interdict.

They may not be within a 300-metre radius of the factory premises at Hargreaves Avenue, Zwelitsha, except for legitimate business or employment purposes, or if they are legitimately using the road or visiting nearby premises of a third party.

Da Gama was established in 1948 and is regarded as a key part of the business community in Buffalo City, running a 24-hour operation six days of the week.

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