State bailout for Castellano?

South African Clothing and Textile Workers' Union (Sactwu) provincial secretary Lawrence Xola said on Thursday, 7 January, that Finance MEC Mcebisi Jonas, Sactwu, Cosatu, the Eastern Cape Socio-Economic Consultative Council and company management would be part of the meeting.

“We, as Sactwu, initiated that meeting to find an amicable solution in the form of a bailout from government,” Xola said.

Speaking at the inaugural Joe Slovo Memorial Lecture on Wednesday, Cosatu provincial secretary Isaac Rayi said: “Right at our doorstep we are faced with the crisis of job losses.

"Castellano is to close down, affecting about 300 workers.”

The Dispatch reported last month that the Grahamstown High Court had granted a provisional liquidation order against the family-owned business.

A final order is due on 28 January.

The firm blamed its crisis on a weak US dollar and the global recession, as 80% of its output is exported.

Xola said at the meeting the firm would make a presentation on what led to the problem and what strategic plans were in place to change the situation.

“The meeting will come out with recommendations and suggestions that must be considered as means to salvage the current impasse,” he added.

Chief executive officer Vic Beltrame could not be reached for comment on Friday.

Source: Daily Dispatch

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