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'SAB deal to enrich black elite'

Dec 09 2009 17:31

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Johannesburg - Food workers' union Fawu on Wednesday rejected the content of SA Breweries black economic empowerment deal.

While the transaction had the potential to be truly broad-based in volume, in that about 50 000 retailers of SAB beer and soft drinks products and 9 500 SAB employees would benefit, in value terms it was disappointing, the Food and Allied Workers' Union said in a statement.

It felt the employee share stake portion of the transaction would "perpetuate inequalities within SAB and within society".

Senior black managers, who on average earned R70 000 a month, would get about nine times more units for every unit held by an employee earning R7 000 a month with 10 years service.

"In other words, a R7 000 earning employee will get a unit of R84 000 (annual gross salary) and an additional R21 000 (25 percent of his salary if he has 10 years of service) worth of shares.

The manager would get R840 000 worth of shares, but nothing additional for years of service. The net effect would be that few hundred black managers would be enriched at the expense of the "meaningful mass empowerment" of almost 9 000 employees, reinforcing disparities of asset ownership in society and inequitable distribution of income in SAB.

The union would talk with its members during the festive season about the prospects of protest action against SAB.

The company could not immediately comment.

- Sapa

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