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ABInBevBL Premium reports that the Food and Allied Workers Union (Fawu) intends to file a complaint with the Competition Commission on Thursday to block plans of South African Breweries (SAB) to retrench hundreds of workers.  

Deputy general secretary Mayoyo Mngomezulu claimed SAB was in breach of the merger agreement entered into by its parent company, AB InBev, and the commission in 2016 after the latter’s takeover of the local beer maker was finalised.  As part of the merger deal, AB InBev agreed to a number of conditions, including that there would be no forced retrenchments in perpetuity in relation to the merger and that permanent employment numbers would be maintained for five years.  SAB confirmed on Wednesday that it planned to lay off about 500 workers as part of a review of its operations, although the actual number of persons to be retrenched could be less.  The company employs about 5,697 people.  SAB said the looming job cuts were not in contravention of the conditions AB InBev had agreed to.  The company attributed the cuts to a range of factors outside its control, including “regulatory uncertainty, above-inflation excise rates, as well as the prevailing trading conditions in the SA economy.”

  • Read the full original of the report in the above regard by Siseko Njobeni at BusinessLive (paywall access only)
  • Read too, Job cuts expected at SAB, at Moneyweb


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