The General Industries Workers Union of South Africa (Giwusa) plans to oppose Adcock Ingram’s proposed retrenchments and closure at its Clayville, Johannesburg plant, despite the company citing losses, under-utilisation and unprofitable products, reports The National.
Giwusa said last week that it would defend every job after Adcock Ingram issued Section 189A notices proposing the retrenchment of up to 250 workers and the closure of the manufacturing plant.
In a statement, the union said that any financial losses “were not the fault of workers”.
The response follows a recall by the South African Health Products Regulatory Authority (SAHPRA) of specific batches of Citro-Soda Regular products in March – this after a potential risk of foreign-material contamination was identified during an inspection at the facility.
SAHPRA said broader quality concerns were identified, including non-compliance with Good Manufacturing Practice (GMP).
Spokespeople for Adcock Ingram’s JSE-listed parent Bidvest could not be reached for comment.
“Workers create value; management and shareholders decide how that value is distributed. The company’s solution is to make workers pay for market failures and strategic errors with their livelihoods. We reject this outright. Profits are prioritised over people – that is a choice, not a necessity,” the union said.
Responding to the company’s claim that “the SAHPRA shutdown caused under-utilisation and excess headcount”, the union said regulatory enforcement was a management risk, and not grounds to dismiss workers who had no role in the regulatory action.
The company also claimed that “certain products generate zero or negative margins”. The union said that if products were unprofitable, the answer was to change the product mix, not to discard the workers who manufactured them.
“Workers are not responsible for pricing, market demand, or cost structures. They are responsible for production – and they produce value every single day. The company must restructure its operations, not its workforce,” it added.
Giwusa called on the company to withdraw its Section 189A notice immediately, and demanded transparent financial data to verify the claims.
Inspections
SAHPRA said in February that it had treated allegations of GMP non-compliance at the plant with urgency. It had previously conducted inspections between August 2023 and October 2024, focusing on sterile eye drops and oral dosage forms as part of its regulatory inspections.
It also received a complaint about unhygienic conditions on 16 April 2025 and while an unannounced inspection on 22 April found no biological contamination, cleaning logs did not include cleaning times, and the company was instructed to update them.
In July 2025, Adcock Ingram entered into a transaction with India-based Natco Pharma. Subject to regulatory and shareholder approvals, Natco offered to acquire the Adcock Ingram shares not held by Bidvest, with Bidvest remaining the controlling shareholder.
The Clayville developments follow a Carte Blanche broadcast in which a former employee raised concerns about alleged GMP non-compliance at the plant.
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