Retail News South Africa

ABI bosses see end to strike even as union stands firm

Workers at Amalgamated Beverage Industries (ABI) were standing firm and had refused to call off a three-week strike, the union representing them said yesterday, 17 January 2010.

But management at ABI, the soft-drinks division of South African Breweries, said in a weekend statement it expected most workers to return to work today, 18 January.

ABI employees belonging to the Food and Allied Workers Union (Fawu) have been on strike since 22 December. The dispute is on the size of a proposed wage increase, as well as the use of labour brokers at ABI.

Although an agreement between union negotiators and ABI was reached last Wednesday, it was rejected by union members. Fawu general secretary Katishi Masemola said ABI was offering a 7.8% increment on “actual wages” but if bonuses were taken into account, the offer was an 8.3% increase on the total wage bill.

The union had asked for an increase of 9.5% on actual wages, and had then demanded 8.5% on the “actual wage increment” — the money paid to workers every month, excluding bonuses.

“They still refused to budge,” Masemola said. He said the union also wanted ABI to guarantee that casual workers who were striking alongside permanent staff, and those employed through labour brokers, could return to work.

ABI spokeswoman Robyn Chalmers said Fawu members had started returning to work last week, and many more were expected to return today.

“However, some union members in a few plants are expected to remain on strike,” she said.

Congress of the People spokesman Ndizipho Kalipa said if the strike continued, workers' families would be put at risk.

“This is January month,” he said. “Why is the leadership pursuing this?”

Major beverage retailers including Spar and Solly Kramer said the strike had had limited effects on their operations.

Group marketing director for Spar Roelf Venter said: “I can say that up until this stage, we have been very well supplied by ABI.

“Two litre bottles make up 80% of our sales; we sometimes run short on one litres but, in general, we have never had a problem. ABI really looks like they are handling everything very well.”

The store manager at liquor store Solly Kramer's Sandton, Wally Watton, said: “There has been no effect whatsoever on our inventory levels.”

Source: Business Day

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