RCL Foods, Tongaat Hulett among sugar producers hit by wage strike

Cape Town – South African sugar workers have downed tools after wage negotiations broke down, with unions demanding a 13% increase while employers are offering 5.4%.

The unions say they are prepared to return to negotiations if employers offer at least 7% without conditions.

Workers at RCL Foods Sugar and Milling are among those taking part in the protected strike.

According to SABC News, the unions rejected a previous 6% proposal, saying it was conditional and therefore no longer on the table.

[WATCH] Workers in the sugar industry are continuing with the strike action today, demanding salary increases. RCL Foods which employs about 1500 people at its sugar processing plants in Mpumalanga is one of the most affected companies. @mwelimasilela has more. pic.twitter.com/OQjn0d0H7i

— Newzroom Afrika (@Newzroom405) August 18, 2026

“Currently we are demanding 13%,” FAWU president Nico Ndima said. “6% is no longer on the table now because it was a conditional offer from the Commission of the CCMA.”

However, Nkululeko Mthethwa, FAWU deputy president said that the  workers were willing to compromise.

“We are willing to go back to the negotiating table and settle at 7%,” Business Day quoted Mthethwa as saying.

Workers are also seeking a R1,000 transport allowance and R1,500 housing allowance. About 70% of the industry’s 5,000 workers are reportedly on strike at 12 milling companies in KwaZulu-Natal and Mpumalanga, including RCL Foods, Illovo Sugar, Tongaat Hulett and Gledhow Sugar Company.

The dispute comes as the sugar industry faces pressure from rising imports. Nearly 95,000 tonnes of sugar entered South Africa between January and May 2026, compared with about 55,000 tonnes during the same period last year, according to figures cited by Business Day.

[WATCH] RCL Foods’ Malelane Sugar Mill employees in Nkomazi, Mpumalanga have downed tools demanding a 13% wage increase. The employer is offering them a 5.4% wage increase across the board. The workers say they they have been negotiating since April this year. #sabcnews pic.twitter.com/xmMwM0kmD2

— Nhlanhla Jele (@Nhlajules) August 17, 2026

The industry generates about R24 billion annually, employs around 5,000 workers and supports roughly one million livelihoods, particularly in KwaZulu-Natal and Mpumalanga.

The strike also adds pressure to Tongaat Hulett, which remains under business rescue.

“Tongaat Hulett is the market leader and is currently under business rescue, so they can’t afford to be on strike. They are going to suffer more,” Mthethwa said.

The wage dispute remains unresolved as unions push for a better offer while the industry continues to grapple with import competition and broader financial pressures.