Petrochemical giant Sasol’s announcement that it plans to transfer 10% of its issued share capital, worth close on R18-billion, into black hands has inspired mixed messages from trade unions.
While the deal was greeted with a “thumbs-up” from Solidarity, the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (Ceppwawu) on Tuesday “cautiously welcomed” the news.
South Africa’s third-largest company said that as part of its black economic empowerment (BEE) deal, a 4% stake will go to its employees — this is expected to benefit about 27 000 employees.
The company also said 1,5% of the 10% stake will be put into the Sasol Foundation, a still-to-be-established vehicle that will contribute to growing South Africa’s skills, particularly in science and technology.
With employees set to obtain shares worth more than R7-billion, Sasol’s employee share-ownership scheme is the largest announced by the private sector to date.
The largest previous plan was Anglo Platinum’s R3,3-billion employee share-ownership scheme, followed by Impala Platinum, whose employee share-ownership scheme is valued at R1,7-billion.
AngloGold Ashanti’s scheme is worth R1,1-billion and plans by Kumba Resources are worth R500-million.
Ceppwawu said in a statement that any empowerment deal must incorporate the key broad-based principles that will benefit black employees and new broad-based empowerment entrants.
Planning to discuss the proposed BEE deal in greater detail at its coming national executive committee meeting this weekend, the union said it will be looking for a commitment from Sasol that 75% of the benefits provided by the share-ownership scheme must accrue to black employees.
“Any benefit that fundamentally ignores this principle may jeopardise Sasol claiming broad-based BEE [BBBEE] points,” it said.
An affiliate of the Congress of South African Trade Unions, CEPPWAWU said it wants more details about Sasol’s plans to acquire skills and its intentions pertaining to the transfer of skills to black employees.
The union wants a reassurance from Sasol that its BBBEE procurement — which totalled R4,2-billion in the year to the end of June 2007 — focuses on new and genuine broad-based entrants that include cooperatives and other forms of BBBEE ownership.
“We would discourage ownership by the ‘usual’ empowerment suspects,” the union said.
Solidarity, on the other hand, said Sasol’ announcement is a positive example of truly broad-based empowerment.
“Apart from the fact that employees form the group who will derive most benefit from the deal, it is also seen as a positive aspect that poor black communities will be able to obtain shares and that a small wealthy black elite will not be able to grab all the shares,” said Dirk Hermann, deputy general secretary of Solidarity.
The employees’ shares will be managed by a trust. The composition and control of the trust will next be negotiated with the employees.
Hermann said that the plan comes at a perfect time, considering the great skills shortage in South Africa and in Sasol. — I-Net Bridge