Coca-Cola job massacre: 680 workers face axe, Parliamentary committee warns of ‘irreversible damage

Coca-Cola

Cape Town – The Chairperson of Parliament’s Select Committee on Economic Development and Trade, Sonja Boshoff, has expressed “grave concern” over Coca-Cola Beverages South Africa’s (CCBSA) plan to retrench hundreds of workers, warning that the move could push already vulnerable regions and households into deeper economic distress.

Media reports revealed that CCBSA intends to cut about 680 jobs nationally.

The company, which employs over 7,000 people across the country, said the cuts will be implemented as part of a restructuring process.

Boshoff said the pending retrenchments come after a wave of job losses at other major companies, including Goodyear, ArcelorMittal and Ford, threatening to erode South Africa’s industrial base.

“Unless urgent and coordinated action is taken, the damage to our economy, communities, and industrial base will be irreversible. The stakes are high, and these job losses will push families into greater precarity, further eroding trust in our economic stability,” she warned.

She singled out the Eastern Cape, Bloemfontein, East London, Newcastle and Vanderbijlpark as particularly vulnerable.

“These retrenchments will only amplify socio-economic stress,” she said.

Goodyear South Africa plans to shut down manufacturing at its Kariega plant, putting about 900 jobs at risk, while ArcelorMittal South Africa has announced it will cut 4,000 roles – nearly half its workforce – including major reductions at its flagship Vanderbijlpark steel plant. Ford Motor Company South Africa has indicated that over 470 employees will lose their jobs across the Silverton assembly plant, Struandale engine plant and administration.

“In total, the automotive industry has experienced more than 4,000 job losses over the past two years, as 12 companies in the sector have been forced to close their doors,” Boshoff said.

She stressed that the knock-on effects go beyond formal employment. “It concerns the committee that small businesses, suppliers, service providers, and the informal sector are being thrown into uncertainty by these ripple effects,” she added.

Boshoff called for urgent government action to “arrest the industrial decline” by making “the right market choices” and investing in clean energy and a stable power supply.

“Consumers have less spending power, municipalities have less revenue, and households are struggling. Without immediate and coordinated action, we risk a downward spiral that will be difficult to reverse,” she said.

Boshoff urged government to convene an emergency multi-stakeholder summit with affected companies, labour unions and provincial governments “to develop concrete interventions that protect jobs, stabilise industries, and restore investor confidence.”

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