Cosatu seeks clarity on Old Mutual BEE deal
Stephen Gunnion
--------------------------------------------------------------------------------
E-Mail article Print-Friendly
Related Links
A distinctive deal
THE Congress of South African Trade Unions (Cosatu) will put Old Mutual’s empowerment deal, announced early this week, on the agenda of the next meeting of its central executive committee (CEC), scheduled for next month.
The federation said yesterday that there were a number of issues on which it needed clarity in Old Mutual’s deal, including the establishment of a labour trust by Old Mutual and the exact function of the trust.
Following a meeting of its committee in February, Cosatu said that by negotiating with individual unions within the federation Old Mutual was using “divide-and-rule” tactics to weaken its bargaining power.
“Old Mutual does not want to disclose all the information in its hands,” Cosatu spokesman Paul Notyhawa said yesterday. “We are going to be bringing this matter once more to the CEC where all our affiliates are represented.”
Notyhawa said the committee would make a decision on how to take the matter forward.
Old Mutual spokesman Nad Pillay said the group had been transparent in outlining which unions were involved and the benefits they would receive.
Under Old Mutual SA’s deal, 13,48% is being sold to black investors. About 17% of that is being sold to an education trust, which will hold an effective 2,27% of the group, worth about R576m.
Old Mutual said the trust was designed to benefit black members of five participating client trade unions, including the Democratic Nursing Organisation of SA, the National Education Health & Allied Workers Union, the National Teachers Union, the South African Commercial Catering & Allied Workers Union and the South African Democratic Teachers Union. Other relevant unions would be included later, Pillay said.
Old Mutual CEO Jim Sutcliffe said earlier this week there had never been any direct negotiations with Cosatu.
Old Mutual SA MD Roddy Sparks said earlier this week that Cosatu had been included in broad discussions as part of the process. In contrast to Notyhawa’s remarks, Sparks said he had spoken to Cosatu general secretary Zwelinzima Vavi on Tuesday morning, who had indicated he was “broadly supportive of the transaction”, although he would have liked the education trust to be bigger.
“He believes it’s good for labour and a step forward for the labour movement in SA for a company such as Old Mutual to be putting so much money into an education trust for the benefit of members,” Sparks said.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
