JOHANNESBURG. — Trade union federation Cosatu has called on the government to intervene in the proposed SABMiller takeover by rival Anheuser-Busch InBev (AB InBev) to protect the country’s revenue base and prevent any job losses in the country.

The trade union federation said that it was worried the merger could result in massive job losses in the food and beverages industries.

Cosatu spokesman Sizwe Pamla said the government could not afford the flight of capital out of the country as this would affect its revenue collection.

“The government cannot be a spectator when the fiscus is under attack,” Pamla said.

“SABMiller is one of the biggest corporate taxpayers in South Africa and if its offices are relocated elsewhere the fiscus would be hardest hit as both the company and the workers would not be able to contribute.”

SABMiller employs about 70 000 people in more than 80 countries where the brewer operates and its global annual sales amount to $22 billion (R298 billion).

However, the company is a South African brand only in name as it moved its primary listing and headquarters to London in 1999. In South Africa, the company employs more than 6 400 people and says in has created more than 45 000 indirect jobs through supplier companies.

The Food and Allied Workers (Fawu), which is the largest union in SAB, yesterday said there was anxiety among its members on the prospects for their jobs.

Fawu general secretary Katishi Masemola said the union was disturbed by the lack of certainty and clarity on where the process was.

Mr Masemola said that Fawu would oppose the transaction by participating in the shareholders meeting that would be set up to vote on the transaction, adding that the union would also fight the deal when it came forward for regulatory approval.

“As Fawu, here in South Africa, we also believe that this giant called SABMiller has its roots in South Africa and its success is based on sacrifices made by thousands of workers who built this company over decades and throughout the last century and must remain with some listing at the JSE.

“The argument that this transaction will not lead to job losses, as SABMiller is largely in the developing world and North America and AB Inbev is largely in the developed world and Europe, is rejected as dishonest, because there would be rationalisations of operations.”

The competition tribunal said that it would only get involved (in the matter) once it had received the notification on the merger. Four years ago, South African unions fought against Walmart’s move to buy Massmart.

The SA Commercial, Catering and Allied Workers Union said that while the trade union supported foreign direct investment in the South African economy, such investment had to be responsible, not destructive.

Trade union Solidarity said it had not received inquiries from its members about the takeover.

“We will monitor the situation very closely, and should any labour issues arise as a result of the takeover, we will evidently assist them,” said Solidarity spokeswoman Inge Strydom. — The Star.

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