However it has expressed concern that the transaction will "perpetuate inequalities within SAB and in society, given the spread of unit-holding of the employee share stake portion of the transaction."
FAWU said in a statement that it welcomed the transaction as potentially truly broad-based 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.
However, the union said it does not find it acceptable for the company to use remuneration packages as the basis for the distribution of units within the employee share stake (ESOP), given the high ratio of 10:1 or more in remuneration disparities.
"For example, if a black manager earns R70,000 a month, they will get ten times more units for very single unit held by an employee earning R7,000 a month.
"In other words, if a R7,000-earning employee gets a unit of R100,000 worth of shares, a R70,000 black manager will get 10 times the units with a total of R1 million worth of shares," it said.
"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 ten thousands of all employees from this transaction," it said.
FAWU added it does not accept that those employees, who retire, resign or get retrenched or disabled during the 'lock-in' period of 10 years should be part-disqualified from fully benefiting in the transaction.
It added that for now, the union and the company will be continuing with engagement "and hopefully, these two areas, where there is no agreement yet, will see both parties finding each other."
Meanwhile, the union has written letters requesting meetings with Foodcorp, Pioneer Foods, KWV and Tiger Brands to discuss their BEE transactions.
Published courtesy of
