Merlus denies owing fishermen five months’ salaries

Merlus Cormorant Fishing Company has dismissed allegations that it owes 111 fishermen five months’ unpaid salaries as “inaccurate and misleading”.

In a media statement issued on Friday, Merlus chairman Stanley Nick Katzao said the company had "actively tried to resolve" administrative challenges surrounding the placement of the affected fishermen since April this year.

Katzao stated that "we refuse to allow our corporate reputation to be manipulated by labour representatives and their proxies who deploy highly emotional public appeals to spread distorted facts and mislead the nation".

"The claim that Merlus owes five months of back pay to these individuals is devoid of any truth and legally incorrect," Katzao said. "No employment relationship currently exists between Merlus Cormorant and these 111 individuals due to outstanding administrative and placement mismatches."

He said the company's formal Government Employment Redress Programme (GERP) designation agreement was only received on 10 June and would take effect once employment had been offered to and accepted by workers.

"Because contracts have not been finalised, no wages have been generated or withheld," he said.

Katzao also disputed assertions that the company had received a 2 655 metric tonne quota allocation intended for the 111 fishermen, saying they are “completely false”.

“This quota belongs to a completely separate group of 262 GERP employees who are currently fully, gainfully, legally and happily employed by Merlus. Zero quota has been released by the government for the new group of 111 individuals."

Offers made

Katzao said Merlus had repeatedly offered onshore factory positions to the group because all sea-going positions within its fleet were occupied.

"Merlus Cormorant repeatedly offered onshore factory employment to the group. However, during direct consultations, the workers explicitly stated they would only accept employment at sea and refused factory placement."

He said the matter had resulted in an administrative impasse, with regulators indicating that quota allocations for the new group would only be considered once employment contracts had been signed.

"This has created an administrative deadlock where the company is asked to hire workers before the means to sustain them is granted," Katzao said.

Merlus reiterated its support for the GERP initiative.

"We stand firmly by our active workforce. We remain open to lawful, structured dialogue but will not be pressured by external actors using false narratives to force unviable employment conditions."