Coca-Cola Beverages South Africa (CCBSA) has announced a significant restructuring plan that could lead to the retrenchment of more than 680 employees. The company has cited financial constraints as the primary driver for the decision, which includes the planned closure of its manufacturing plants in Bloemfontein and East London.
According to an internal document, the beverage giant has stated its intention to offer a “generous separation package” to affected employees. The company has framed voluntary severance packages as an alternative to forced retrenchments.
The announcement has been met with immediate opposition from the Food and Allied Workers Union (FAWU). The union has vowed to challenge the process, alleging the company is acting outside of legal consultation frameworks.
FAWU Deputy General Secretary, Edwin Mabowa, confirmed the union had received a Section 189 notice of intention to retrench from CCBSA, coupled with an application to the Commission for Conciliation, Mediation and Arbitration (CCMA) for facilitation. The first meeting with the CCMA is scheduled for Friday, September 19, 2025.
Mabowa expressed strong disapproval of the company’s approach, accusing it of negotiating directly with workers and bypassing the union.
“Before we can even have our first meeting with the CCMA, the company is going behind our backs and consulting with the employees individually,” said Mabowa. “They are telling you that the first phase is completed and the second phase [is starting]… according to the union, there’s no first and second phase. Section 189 is a legal process. So whatever the company is doing now becomes illegal.”
Mabowa also questioned the company’s rationale, stating that CCBSA “does not plead poverty” but aims to realign the business. He noted that a majority of the affected workers are cleaners, a service the company says is not its core business.
FAWU outlined its strategy to counter the retrenchments. The union plans to push for the cleaners to be transferred to a dedicated cleaning service under a Section 197 transfer agreement, rather than being retrenched. Furthermore, the union has raised broader concerns about foreign ownership of local companies, linking this restructuring to previous job cuts following mergers and acquisitions.
“We have invited the Department of Trade, Industry and Competition to a meeting to discuss these measures holistically,” Mabowa stated, referencing past retrenchments at CCBSA in 2016 and 2019.
Both parties are set to meet with the CCMA on Friday to discuss the way forward. CCBSA had not responded to a request for comment at the time of reporting.