Workers share in farm
2007-05-24
THE Rennie Farms, one of the country’s biggest suppliers of tomatoes to Woolworths, has sold 43,6% of the business to their workers under the Government’s Land Redevelopment and Distribution (LRAD) Programme.
The Western Cape branch of the Department of Land Affairs granted the workers R13,5 million, with which 281 workers who formed the Rennie Farm Workers Trust, purchased 43,6% of the shares in Rennie Farms (Pty) Ltd.
Each worker owns one share in the Trust. As the farm makes profits each farmworker will receive a pro-rata dividend every year. In the future the shares can also be used as collateral for loans to purchase homes.
David Rennie, managing director of Rennie Farms said: “We felt our farm was an ideal candidate for the LRAD scheme as we have a large number of permanent staff from families that have been with us for generations, and we have an economically viable business.”
The owners formed a business partnership with the farm workers called Rennie Farms (Pty) Ltd, jointly owned by the Rennie Family Trust and the Rennie Farm Workers Trust.
Rennie said: “As a farmer your heart has to be in this process in order to make it successful. Our family has bought into the idea and we have formed a solid partnership with our staff.
“We will be staying on to ensure that the professional management of the business continues to benefit from this partnership.
“The board is so confident in the future of our business that we have invested R2 million in expansion of our business since December.
“Ownership in the farm gives the staff a sense of belonging and a belief that their work makes a difference to the collective good of everyone on the farm,” he said.
Dawid Flippies, a member of the board of Rennie Farms said: “My family has been living on this farm for three generations. My father still works here as the gardener, I have worked my way up to assistant manager and my son works as a delivery driver. Many of the people have been working here for more than 20 years.
“This partnership gives us hope for the future, and for the first time many of the workers, instead of living from day to day, can plan ahead.
“These shares mean we will have something meaningful to pass onto the next generation. We are very excited and optimistic about the future.
“We would like to thank government for investing in us and thank Rennies Farms for encouraging this process.”
Erika Williams, facilitator from Department of Land Affairs who was responsible for this project, says: “We provided funding for these workers to acquire the shares, and the success now lies in how to implement the plan.
“I think they’ve got good things going for them. The Rennie company has been going for more then 30 years, I think they will definitely make it.
“I am confident that if they implement the business plan, they will become one of our great success stories.”
Rennie Farms has always invested in their staff, the farm has been running two crèches for more then 22 years, and implements extensive training programmes to improve the managerial and technical skills of their staff.
“Over the years we have witnessed our staff improving their positions in life, not only in the workplace by training and qualifying for higher positions, but also in what they are able to afford at home.
“We hope that in the future some of out staff will be trained well enough to take up managerial positions and that all our staff will be able to own good houses.
“We hope that by this project the government and the Rennie family have presented 281 families with the chance of a brighter future - truly Broad Based Black Empowerment initiative, so important if South Africa is to achieve its full potential as a united country,” Rennie said.
More
News
|
