The Competition Tribunal has issued an order, instructing South African Breweries (SAB) to set aside a portion of its black economic empowerment (BEE) scheme’s top-up benefits for former employees, pending the outcome of the final determination of a Competition Commission investigation.
This follows an application for urgent interim relief by Coca Cola Beverages South Africa (CCBSA).
CCBSA, on behalf of its employees, claimed that conditions of the merger, whereby the Coca-Cola Company bought SABMiller shares held in Coca Cola Beverage Africa (CCBA), have been breached.
Former SABMiller employees that were transferred to CCBSA as a result of that merger continued to remain beneficiaries under the SAB Zenzele Employment Trust, through a condition that was imposed by the tribunal.
However, in late 2019, and in anticipation of the impending maturation of the Zenzele Scheme on March 31, 2020, the allocation committee communicated to certain beneficiaries that top-up benefits would be allocated to beneficiaries, with the former SABMiller employees being excluded. It is these top-up allocations that have become the subject of the dispute.
During the merger hearings, SABMiller undertook that these former employees would continue to benefit from the Zenzele scheme as if the merger never happened. The undertaking became a merger condition imposed by the tribunal.
The commission is still investigating the matter.