Today's Labour News

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cloverBusinessLive reports that trade unions opposed to the proposed sale of foods and beverages company Clover Industries to consortium Milco urged the Competition Tribunal on Wednesday to block the R4.8bn transaction, over concerns about job losses.  

In July, the Competition Commission recommended that the tribunal should approve with conditions Milco's acquisition of Clover.  The conditions included a moratorium on job cuts for two years.  On Wednesday, the General Industries Workers' Union (Giwusa) and Inqubelaphambili Trade Union (ITU) told the tribunal to block the transaction, which will result in Clover's delisting from the JSE.  Giwusa general secretary John Appollis said the commission should not have agreed to a merger that would result in loss of hundreds of jobs.  “It does not matter that the job losses will come in the third year after the implementation of the merger.  We do not see the benefit of this merger for employees.  It will only benefit the shareholders,” Appollis said.  Giwusa represents more than 2,000 employees at Clover.  Alongside the Food and Allied Workers Union (Fawu), it is one of the largest unions in the company.  But Clover executive for supply chain, distribution and human resources Jacques van Heerden said Clover's growth after the merger would benefit employees, suppliers, customers and the government.

  • Read the full original of Siseko Njobeni’s report in the above regard at BusinessLive


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