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Johannesburg - The Food and Allied Workers Union on Wednesday welcomed the settlement agreement between Pioneer Food Group [JSE:PFG] and Competition Commission which will effectively see the former incurring penalties of up to a total of R1bn.
The union said it was pleased that Pioneer will be allowed to continue existing in that the penalties will be paid over time and will benefit consumers via a R160m price reduction in selected products, as well as the fiscus, via an additional R250m making it a total of R447m to the National Revenue Fund. It will also benefit increased competition through a R250m funding.
"We also welcome the imposed capital expenditure (capex) that Pioneer must make to improve and upgrade equipment and machinery. We hope that this capex will not be used by Pioneer to replace workers and reduce labour force across its subsidiaries," said Fawu General Secretary Katishi Masemola.
"Secondly, we believe that the nature and structure of penalties will send a strong message out there that consumers and increased competition will benefit from application competition policy and administration of competition law."
He says it is a pity that only through forfeiting on bonuses are the executives and senior managers implicated in violating the competition act punished.
"We would want to see severe penalties, particularly in a form of criminal sanctions, to those involved in breaking the law going forward," he said.
The union said it was pleased that Pioneer will be allowed to continue existing in that the penalties will be paid over time and will benefit consumers via a R160m price reduction in selected products, as well as the fiscus, via an additional R250m making it a total of R447m to the National Revenue Fund. It will also benefit increased competition through a R250m funding.
"We also welcome the imposed capital expenditure (capex) that Pioneer must make to improve and upgrade equipment and machinery. We hope that this capex will not be used by Pioneer to replace workers and reduce labour force across its subsidiaries," said Fawu General Secretary Katishi Masemola.
"Secondly, we believe that the nature and structure of penalties will send a strong message out there that consumers and increased competition will benefit from application competition policy and administration of competition law."
He says it is a pity that only through forfeiting on bonuses are the executives and senior managers implicated in violating the competition act punished.
"We would want to see severe penalties, particularly in a form of criminal sanctions, to those involved in breaking the law going forward," he said.
