Vavi welcomes investigation into workers’ allegations against Clover

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South African Federation of Trade Unions’ (SAFTU) General-Secretary Zwelinzima Vavi says he’s relieved that Trade, Industry and Competition Minister Ebrahim Patel have agreed to investigate workers’ allegations against diary producer, Clover.

He says Clover has reneged on the terms of its merger agreement with Milco, a company led by a consortium of companies run by Israeli’s Central Bottling Company.

The merging parties agreed to a moratorium on retrenchments for three years and the creation of 550 jobs through project Masakhane.

Vavi says 2 000 workers could lose their jobs as a result of Clover’s proposed restructuring following the merger.

“The minister has now agreed to initiate a process where our allegations will be tested through an investigation by the Competition Commission. The DTI will then approach the Competition Commission to say the facts that are on the table that the terms of agreement of the merger are now being breached by Milco and Clover. We are happy with that,” says Vavi.

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