Delta Dairies workers win big at Industrial Court
Mpho Mokwape | Wednesday July 30, 2014 11:31
The Industrial Court initially ruled in favour of workers on July 23, but stayed the order as it allowed Delta Dairies to argue its case and show cause why the execution should not be confirmed. Yesterday, Maruping said the company had failed to show cause why the order should not be enforced.
“Since the company has not given this court any valid reasons, this order is confirmed and made final,” he said.
Maruping said the company’s arguments that the Citizen Entrepreneurial Development Agency (CEDA) was Delta Dairies’ majority shareholder were of no effect as the Agency had not been cited in the case.
“CEDA might be the majority shareholders but they have not been cited in the proceedings as the other respondents therefore it has no barring in today’s judgment,” Maruping said.
He said the company’s Managing Director, Herman De Lange could take the matter up with CEDA at a later stage to map the way forward for the benefit of the company and the employees.
According to De Lange, CEDA holds 98.5 percent equity in Delta Diaries and has already identified an entity to buy its holdings, even though no timeline for the sale has been provided.
Tirelo Danga, on behalf of the workers, said their only concern was to receive their salaries. Financial woes at the first citizen-owned dairy processing company have worsened over the years, leading to workers suing for unpaid salaries.
Despite public procurement support, Delta Dairies has battled to stay afloat over the years and has been producing milk intermittently since September last year.
The company opened its doors in 2008 with funding from the CEDA Venture Capital Fund.