• The Ramaphosa Plan

    The president said on Friday that the work "starts now". He wasn't wrong, writes Pieter du Toit.

  • Stimulus recap

    Seven key points in the president's package of economic reforms and spending plans.

  • Supporting role

    Meet the members of President Cyril Ramaphosa's new 10-person advisory panel on land reform.

Loading...

Racial exclusion from Sasol share plan means strike is possible

May 28 2018 11:49
Paul Burkhardt, Bloomberg

Government mediators ruled that workers at Sasol [JSE:SOL] are allowed to strike over the exclusion of white staff from an employee-shareholding plan.

Solidarity, a labour union that represents skilled, mainly white workers, registered a dispute with the Commission for Conciliation, Mediation and Arbitration, or CCMA, after Sasol introduced benefits that it said would exclude workers based on race.

South African businesses have implemented plans since democratic elections in 1994 that aim to redress economic inequalities stemming from white-minority rule under apartheid.

“The commissioner ruled in our favour saying that this is a strikeable dispute,” Deon Reyneke, the deputy general secretary at Solidarity, said by phone.

The matter was referred to the CCMA for conciliation before a certificate allowing permission to hold a strike is awarded, he said.

Sasol has struggled to improve its empowerment structure since the outgoing plan, known as Inzalo, failed to pay out to more than 250 000 black South Africans who participated in the transaction after the stock was battered by a slump in crude prices.

Sasol tumbled last year after the company proposed to sell about R13bn of shares to cover the debt owed by investors.

“We remain confident that we have designed the Khanyisa transaction to incorporate what we consider to be the most appropriate and best features of broad-based black economic empowerment structures,” Johannesburg-based Sasol said in an emailed response to questions.

The plan “is aimed at specifically advancing the transformation of the South African economy and Sasol,” it said.

Inzalo included all employees, while the incoming plan, known as Khanyisa, will discriminate against white workers by not recognizing them, according to Solidarity. Inzalo means yield in Zulu, while Khanyisa means to illuminate.

Sasol’s share price was trading 2.93% lower at R450.43 by 11:08.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

sasol  |  companies  |  industrial
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think of President Cyril Ramaphosa's economic stimulus plan?

Previous results · Suggest a vote

Loading...