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Johannesburg - Tiger Brands' black economic empowerment (BEE) transaction is
"superficial," the Food & Allied Workers Union (Fawu) said on
Wednesday.
"The Fawu rejects the media-announced BEE transaction by Tiger
Brands as a public relations exercise and marketing tactic, far
from a genuine empowerment of its employees," it said in a
statement.
The union added that Tiger Brands - unlike many other companies
with which Fawu had relationships - continued to "unilaterally"
announce equity transactions involving employees without engaging
their representatives.
"This is a tendency that continues despite our recent verbal and
written warning to them that it is unacceptable," Fawu said.
According to the union, there were problems with the transaction
as it created "a plethora of individuals holding 100 shares each
and thereby creating some kind of incentives instead of collective
ownership".
Furthermore, Fawu said the structure of the transaction simply
reinforced remuneration disparities by giving black managers more
shares, housed in a separate trust, and low income earners a small
number of shares.
According to the union, there was no properly constituted
employee share ownership project trust, with members of the board
of trustees appointed to run the affairs of the beneficiaries.
"We call on the company to sincerely engage with the union to
look at the structure and the substance of this transaction and not
to engage in a public relations exercise by announcing a deal that
does not meaningfully empower our members and employees of Tiger
Brands," Fawu said.
In response to Fawu's statement, the company told Sapa that it
had invested considerable time and thought into the planning and
delivery of the transaction.
"We are confident that it will benefit our employees as well as
a broader section of society, helping to address social needs in
both the short and the long term," the company added.
Earlier this week, Tiger Brands announced a BEE deal, saying it
would offer an additional 10% stake to black investors in a
transaction with a value of approximately R2.8bn.
- Sapa