DELMAS – The Public Investment Corporation (PIC) has stepped in with a R250 million funding package to stabilise Daybreak Foods, following weeks of worker unrest over unpaid salaries. Of that amount, R74 million has been urgently reallocated to address immediate needs including salary payments, animal feed, and operational costs.
In a statement issued on May 9, the PIC confirmed:
“This includes outstanding salaries for April 2025, feed supplies to prevent further starvation and cannibalism among birds, and essential operational expenses necessary to avoid liquidation.”
The funding forms part of a broader support facility, with R176 million already disbursed in February 2025. The PIC also announced plans to strengthen governance at Daybreak Foods, holding the board and management accountable for the company’s turnaround strategy.
The intervention comes in the wake of violent protests that erupted on Tuesday, May 6, when workers took to the R50 road in Delmas, blocking traffic and demanding two months’ unpaid wages. The protest turned chaotic when police fired rubber bullets and tear gas, causing workers to flee into a nearby maize field. A fire later broke out, destroying about five hectares of maize, with losses estimated at R172,000. The cause of the fire is yet to be established, the speedy response from the farmers ensured that major damage gets prevented.
Abednigo Sunduzo, one of the protesting workers, said, “We’ve gone two months without pay. We were only paid half in March. Management are getting paid, and we’re being told to wait for PIC funding. Some of us are being chased out of our homes.”
In response to the growing desperation, the Department of Labour visited Daybreak Foods on Friday, 9 May, to assist workers in claiming part of their Unemployment Insurance Fund (UIF) benefits to help them get by while they await their salaries.
Police reported that they were forced to act after protesters attempted to storm a closed gate and began pelting them with bottles and stones.
In a statement dated May 7, Daybreak Foods acknowledged its financial difficulties and confirmed it was exploring business rescue options. The company claimed that employee salaries remain a top priority, despite the uncertainty.
However, workers remain sceptical of management’s intentions and continue to demand:
• Immediate payment of salaries,
• Release of UIF and provident fund documentation,
• Transparency regarding company finances and asset sales,
• Improved communication and commitment to worker welfare.
As the dust settles, and with government and PIC interventions now in play, it remains to be seen whether Daybreak Foods can restore trust and stability for its workers and operations.
