COSATU Today, Thursday 10 December 2009

While having welcomed the engagement process between the union and SAB Ltd management on the envisaged BEE transaction within the company, FAWU nevertheless rejects the content of the transaction.

The transaction had a 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 will be beneficiaries of this BEE transaction, but in value terms it is a disappointing initiative in that the employee share stake (ESOP) portion of the transaction will perpetuate inequalities within SAB and within society given that the spread of unit-holding in ESOP is based on remuneration disparities of more than 10:1 ratio.

For example, senior black managers, who on average earn R70 000 a month, will get about nine times more units for every single unit held by an employee earning R7 000 a month with ten years service. In other words, a R7 000 earning employee will get a unit of R84 000 (annual gross salary) and additional R21 000 (25% of his salary if they have ten years of service) worth of shares while a R70 000 earning black manager will get 10 times the units with a total of R840 000 worth of shares (and nothing additional for years of service).

This, in our view, reinforces disparities of asset ownership in society and inequitable distribution of income in SAB. The net effect will be that few hundred of black managers will see elite enrichment at the expense of meaningful mass empowerment of the almost nine thousands of all employees from this transaction. Therefore FAWU condemns this elite enrichment of these black managers at the expense of mass empowerment of the thousands of workers, majority of who were at the forefront of building this giant brewer of the years. This is no different to other transactions where a handful few benefit fish and a majority gets fish crumbs.

We reject a view that the spread of benefits had to ensure black manager talent retention effort as lousy given other avenues, such as actual salaries or other incentives, that could be used for black talent retention.

Anyway, we challenge SAB to note that in Distell Ltd, where SAB owns 30% share-stake, the unit-holding within ESOP portion of their BEE share stake gives employees equal number of units thereby ensuring egalitarian spread of benefits irrespective of skin colour, salary rate and job grade. Their argument of black manager skills retention is unacceptable.

FAWU does not accept the conditions attached to full benefit in ESOP such as employees who retire or get retrenched or disabled during the ‘lock-in’ period of 10 years being part-disqualified from fully benefiting in the transaction.

Meanwhile the union will be consulting its members throughout the festive period into early next year. If our members agree that we take KWV route, when FAWU with the support of COSATU, waged protracted campaign against enrichment of 12 individuals at the expense of ESOP, we will certainly mount protest actions against SAB Ltd and call on our sister unions across the world, under the auspices of the International Union of Food and Allied Associations (IUF), to give the necessary solidarity support.

2. South Africa

2.1 ANC scores victory in Kempton Park

Dumisa Ntuli ANC Gauteng, 10 December 2009

The ANC Gauteng has scored victory at ward 14 bi-elections in Kempton Park yesterday.

The ANC won by 2082 votes followed by the DA with 1103 and COPE at 151. The Independent Electoral Commission (IEC) will release the official results today. Nothing with will be altered in the results because all the parties concurred with the outcome. The ANC results represent a major victory considering that COPE won the bi-election in close proximity to the same area in September 2009.

The ANC is delighted and celebrating its great success. The opposition came with the hope to win but they were not only devastated but crushed with a big margin. It is a massive win for the ANC. The overwhelming victory shows that many people still have confidence and trust in the ANC. It is clear now that we lost the previous bi-election because we fielded a wrong candidate. Our victory has revealed that most of the voters prefer the ANC than the opposition. We have dealt a severe blow to opposition. We have been cohesive and focused. Even our candidate was credible and solid. We have done very well. We will be opening champagne to toast our victory today.

The bi-election was significant and engrossing as we did not want to loose where we have a strong support. We have been working very hard in the door-door campaign and mobilizing the people. One can depict that with the high voter turnout, there opposition is not popular and in 2011 they will continue to suffer serious erosion. We are optimistic that the ANC will win the 2011 local government elections. Our strategy and organizational machinery was rock-solid. The opposition will not win because they treat people with scorn.

2.2 President Zuma's message on HIV and Aids simple yet profound says SACC

Keith Vermeulen, Director - Public Policy Liaison Unit, South African Council of Churches, 10 December 2009

The General Secretariat of the South African Council of Churches (SACC) has endorsed as "refreshingly hopeful" the recent message by President Jacob Zuma on World Aids day.

The message was also described as "simple yet profound" - strikingly different from previous years when the World Aids Day message was generated from Europe - contains words of hope, courage and commitment to care effectively for people struggling with with the Aids pandemic. "The politics of Ubuntu are evident in this message as the President provides leadership by encouraging all to take responsibility for personal protection, desist from infection of one another or others, as well as empowering ourselves to 'know our status.' ", said Dr. Vuyani Vellem, Deputy General Secretary of the SACC.

The President has reasoned well that, in an attempt to overcome the scourge of Aids, "... Our message is simple. We have to stop the spread of HIV. We must reduce the rate of new infections. Prevention is our most powerful weapon against the epidemic. All South Africans should take steps to ensure that they do not become infected, that they do not infect others and that they know their status." The General Secretary of the SACC, Mr.

Eddie Makue, welcomed the willingness of the Presidency to revise upward the current CD4 count - from the current 200 to 350 - that will permit TB and HIV patients, because of the co-infection between TB and HIV - to access anti-retroviral treatment from hospitals and clinics. Treatment will also be available to children under the age of one who test positive, irrespective of CD4 count. "This different approach from the previous regimes" said Mr. Makue, "is one that has a bold plan with significant policy changes. These policy shifts have allowed government to make itself vulnerable to political questions of delivery but - from a humanitarian and faith perspective - we are assured that the practical intent of the message heralds an opportunity for Churches and other faith communities to work with government in stemming the tide of this relentless pandemic."

The President has shown a remarkable degree of leadership in calling for South Africans - including the youth - to take responsibility for protection against HIV and not to expose ourselves to risks.

The SACC believes that this message of responsibility, backed with a government plan of caring and healing for those people and families infected heralds the dawn of a positive era for overcoming the stigma, shame, and infection borne by those suffering from HIV. "We will continue to promote amongst the SACC Churches the importance of each person knowing his or her status by accessing Voluntary Counseling and Testing. "While the results of such testing remain confidential" says Dr. Vellem, "the sharing of stories that have beset people's minds and emotions as they access VCT and learn their status may provide a wealth of Ubuntu that could contribute to holistic healing in our country."

2.3 COSATU in Mpumalanga calls for immediate suspension of Putco buses

Fidel Mlombo, COSATU Provincial Secretary, 9 December 2009

COSATU in Mpumalanga is saddened by the catastrophic slaughter of the people of Mpumalanga by the PUTCO buses on a nearly monthly basis.

Two weeks back a PUTCO bus claimed the lives of ten people due to negligence, reckless driving and the quest for profit maximization.

Today another disastrous tragedy claimed the lives of four people and more than sixteen people seriously injured. Again this carnage has been caused by recklessness ignorance, and negligent.

Nearly each and every year the people of Mpumalanga get killed in masses by the PUTCO buses. The people who die every day in these buses are the working class and the poor who cannot afford any other means of transport but rely on public transport.

Before these buses of death can claim more lives of our people, we call for the immediate suspension of all the PUTCO buses. We demand that the government should arrest and open criminal cases against the management of PUTCO for the murder of our people.

We call upon our Provincial Government and the Premier of the Province to speed up the construction of the Moloto Rail Corridor project so as to provide alternative transport to the people of Mpumalanga.

We send our heartfelt condolences to the families who have lost their loved ones and wish those in hospital a speedy recovery

Mluleki Mntungwa (Communications Officer)

COSATU ICT Unit

1-5 Leyds Cnr Biccard Street

Braamfontein

2007

P.O.Box 1019

Johannesburg

2000

South Africa

Tel: +27 11 339-4911/24

Fax: +27 11 339-5080/6940

E-Mail: mlu...@cosatu.org.za

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