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Cape Town - Cosatu in the Western Cape could embark on strike action in the Western Cape to protest bread price increases.
"The fact that bread continues to increase in the context of declining fuel prices is unacceptable. These companies are the same ones that profited from their collusive price practices. Clearly these companies have no regard for the poorest of our people, when setting prices," said Cosatu's provincial secretary Tony Ehrenreich.
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"The cost of fuel was one of the biggest drivers of bread price increases in the past, with prices shooting up as the price of fuel increased. Now that the fuel price comes down the bread companies are keeping the price high and adding insult to injury by pushing up the prices."
Cosatu has called on the Public Protector to investigate practices at Pioneer Foods [JSE:PFG] and is calling on government to regulate the price of bread.
"In the context of the economic decline, working families are facing increasing pressures to sustain their families and decisive action is required," said Ehrenreich.
He told Fin24 that Cosatu has given Pioneer Foods two weeks as from Thursday February 12 to comply with its requests.
"If they do not come back to us in time, we shall organise protests at their head office in Cape Town. If no pressure is put on bread companies to regulate the prices and to regulate what goes into the bread, we shall call for a strike," said Ehrenreich.
He said bread has become "smaller and lighter over the last few years, for instance".
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Fin24 approached Pioneer Foods for a response on the matter and the company supplied a statement by marketing executive Anton van Zyl.
"Fuel represents only one element of Pioneer Foods’ input costs. Raw material increases – soft commodity and other, as well as rand weakness - are amongst the many considerations that inform pricing," explained Van Zyl.
"The drop in the cost of fuel assists us with price restraint rather than leading to a price reduction. We will continue to ensure we offer our consumers competitively priced products."
He said putting its clients and consumers first, integrity and accountability are some of the values that inform every aspect of its business.
"We take any allegations of unethical behaviour seriously," said Van Zyl.
