The SABMiller –AB Inbev merger will cost the South African economy dearly
14 October 2015
The Congress of South African Trade Unions {COSATU} completely supports its affiliate, the Food and Allied Workers Union (FAWU), in denouncing and calling for the rejection of the deal between SABMiller and AB Inbev. We issue a call to the South African government, local and international regulators and the South African state employees’ pension fund investor, the Public Investment Corporation (PIC), not to ratify the deal.
This merger will affect both the tax revenue and the job security of the workers going forward. SABMiller was built on the back and by the hard work of the South African workers and they deserve to be heard and given assurances with respect to the security of their jobs. We will never allow a situation where the South African offices, of SABMiller, are relocated away from South Africa and the local revenues are spiralled out of the country to the detriment of the entire economy.
This merger will have devastating consequences ,to local but more importantly township and rural economies. SABMiller was already guilty of repatriating profits to London, which is where their primary listing is. The whole exercise is about nothing but profits. The merger does not even qualify to be called an investment, because it is about relinquishing what was partially a family silver to the vultures of monopoly capital.
We also find it a sign of condescension that a deal of this nature has been reached by these two companies ,without workers being consulted. The effects of this deal will reverberate throughout the economy of this country, and all stakeholders, should be given unambiguous and binding assurances before it is ratified.
The once off inflow of foreign capital, to shareholders, is not enough if the long term effects of the deal will be the loss of tax revenue and jobs.The manner in which the deal was done give emphasis to the fact that the whole exercise is not meant to work for the country and its people.
We have learnt over the years ,that during these deals, monopoly capital places profits before decent work, avoids paying taxes and they go to war on workers, their rights, job security, and workplace safety. They demand the right to dismiss workers, when it suits them ,and they are forever ready to exploit the tragedy of youth unemployment to pay even lower wages.
This deal is a reminder that the balance of class forces favours white monopoly capital in the home front and imperialism on an international stage. Our subdued economic situation is linked to the imbalanced trade and investment connections of South Africa with some Western economies.
Buy sinking their claws to the South African economy these countries will suck South Africa into the whirlpool of their predictable future global crisis. We will never manage to address the internal fault-lines inherited from colonialism and Apartheid, if we give monopoly capital free reign.
Statement issued by Sizwe Pamla, national spokesperson, Cosatu, 14 October 2015
