MOSSEL BAY NEWS - "It was always about giving our shareholding workers in a closely-knit family business the ability to provide for their families," group operations director for Viking Fishing Holdings Tim Reddell said on Tuesday after the Western Cape High Court decided not to make final an interim interdict previously granted.
"The sad reality is there will be retrenchments as the company scales down to meet its financial obligations, going forward. Retrenchments will be on a last in, first out basis."
In a press release, Viking Inshore Fishing stated that it noted and recognised the decision by the Western Cape High Court that the interim interdict previously granted by the court - which prevented the Department of Agriculture, Forestry and Fisheries (DAFF) from awarding permits in inshore trawl fishing - should not be made final.
"We understand the need for transformation but still believe the allocation process was ill-conceived and did not adequately take into account the investments made and jobs created by the established industry. We will study the judgment in detail."
Not unanimous
Viking noted that the court's ruling was not unanimous and that one of the three presiding judges handed down a dissenting judgment, finding that Viking did demonstrate a clear right to the interdict originally granted in January.
Viking Inshore Fishing interdicted the DAFF from issuing the permits that would have allowed it to implement its 2016 rights allocation decisions in inshore trawl fishing.
Viking did so because the DAFF's allocation resulted in a 60% reduction of Viking Inshore Fishing's quota for hake and sole, despite the company's black economic empowerment credentials. This dramatic reduction in quota would place Viking's fish processing factory and the jobs of 179 workers in Mossel Bay at risk. The factory has been closed since the legal action began and workers have either been employed outside Mossel Bay or paid while sitting at home. Viking submitted that the mechanism used by the DAFF to allocate tonnages to the fishery was unconstitutional and procedurally flawed.
"Our court action was never about denying new entrants fair access to marine resources. It was never about protecting so-called 'white interests' or 'directors' profits'," Reddell said.
Viking would, as a constructive industry player committed to transformation, continue to engage with the DAFF, Reddell added.
"We have a great deal of expertise, proven fishing capacity, and an ethical, sustainable business model to utilise for a greater and wider good."
Viking believes it has an ethical, sustainable business model which could be used for a greater and wider good.
Mossel Bay scaling down
Addressing staff on Thursday, Bacon said he was sorry to report that Viking's efforts in court were unsuccessful.
"This means that for the remainder of 2017 and effectively for the 15-year period of this quota allocation, we will fish a much smaller quota than usual. The Mossel Bay Viking factory, which has been idle since January, will remain as such for the foreseeable future. It is likely that for the next few months at least, many of our inshore vessels will not put to sea. In short, we are now forced to begin the process of scaling down Viking Fishing operations in Mossel Bay," Bacon said.
"Viking is well known as one of the most innovative and hardworking companies in the fishing industry. We are a family business that cares about our employees. We will continue to look for ways to rebuild what we have lost so we can regain our position as a force for the economic wellbeing of Mossel Bay and the Southern Cape. The court case was always about giving our employees the ability to provide for their families. We have failed to do this. The outcome of the court case is a blow to all of us."
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