SAB WAGE OFFER GUARANTEES 7% AND ABOVE INCREASE FOR MAJORITY

Wednesday, October 9th, 2013

Johannesburg, 9 October 2013: The wage offer tabled by the South African Breweries (SAB) will guarantee that the vast majority of bargaining unit employees receive a 7% and above salary increase.

SAB has tabled a wage offer of 7% on average with performance related pay (PRP). The Food and Allied Workers Union (FAWU) has rejected this proposal and called for the company to do away with PRP. As a result, FAWU embarked on a strike at some of SAB sites last week.

For SAB, PRP is a critical element of its ability to pay wages that are amongst the highest in the country. The company believes that a wish to fundamentally undermine PRP is at the heart of the strike.

SAB’s performance system grades people from 1 to 6, with 6 being the top performance.

In terms of the wage offer, more than 90% (about 2 400 people) of the approximately 2 600 bargaining unit employees who are eligible for an increase will be guaranteed an increase of 7% or above. The top performers will receive an increase of up to 9% while just 217 employees will receive less than 7%.

 

SAB Final Offer

Performance Rating

Number of Bargaining Unit

Employees Eligible for Pay Increase

Guaranteed

Increase

1

4

4.20%

2

213

4.20%

3

1538

7.00%

4

705

7.50%

5

157

8.00%

6

3

9.00%

 

SAB human resources director Yokesh Maharaj said that SAB is one of the world leaders in the brewing industry because it has placed a high level of importance on, amongst other things, performance. This in turn has enabled the company to pay comparatively high wages.

 

“SAB is a world class company, paying world class wages and we expect world class performance, ” he said.

 

Maharaj said that with only about 30% of bargaining unit employees currently on strike, it was clear that the majority of SAB employees supported PRP and the company’s wage offer.

“There are just over 800 people on strike and essentially, they are striking to protect a minority of employees – 217 – who stand to receive a lower increase as they have not performed in line with the company’s expectations.”

He said that there are no winners with a strike which is painful for employees, for the organisation, the union as well as for the strikers.

“As a result, we are committed to coming to a solution that is in the best interest of our employees. We have a strong relationship with FAWU and our door is always open for further discussions to resolve the strike amicably and swiftly.”

SAB’s 7% average wage increase will increase the average monthly pay for shift workers by R1 196 to R18 283. The average remuneration across all sectors is R4 773 and the average bargaining unit salary in the FMCG sector is R9 600.

 

For further information, please contact:

Robyn Chalmers

Head of Media and Communications, SAB

Tel: 011 881 8679

Email: robyn.chalmers@za.sabmiller.com

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