The company announced that 18.9 million convertible, redeemable preference shares — representing 10% of the total share capital — would be made available.
The company said all staff and employees of its franchisees would be eligible, regardless of race, adding that between 75 and 85% of its employees were black.
However, the union that represents workers at the group has warned the move could be viewed as an attempt to manipulate employees during wage negotiations.
Rodney Coe, Spar's group financial director, said it was an empowerment deal designed to meet affirmative action targets.
It would reward employees who had helped enhance the Spar brand.
“We are really happy because employees see this share option as a benefit,” he said.
Management was excluded from the share scheme.
Jimmy Manyi, president of the Black Management Forum, applauded Spar, but said “it should not be the end of such investments”.
“We are happy that Spar has seen the light, and may this be an example to others,” he said.
But he added that only shares sold to blacks could be attributed to BEE.
Lucas Ramatlhodi, a co-ordinator in the secretariat office of the South African Commercial, Catering and Allied Workers' Union, which represents workers at Spar, said such transactions were good only if they were done with “good intentions”.
He said in the past they had seen companies selling shares to workers as a “disguise” to meet BEE requirements.
“Another issue is that if workers have shares, they are neutralised, so that when the bargaining period comes by, they are reminded of their shareholding status.”
He said it was unfortunate for workers because, in the end, they did not have influence as “an ordinary investor”.
According to the government, companies are obliged to meet targets on black ownership, employment and procurement to give the majority a greater stake in the mainstream economy.
Large financial, mining, industrial and telecommunications groups have concluded BEE deals, but few retailers have implemented schemes to bring on board black investors.
Source: The Times
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