Business Day

Solidarity can strike over Sasol employee share plan

- Agency Staff

Mediators on Thursday cleared the Solidarity trade union to strike in a dispute with Sasol over its plan to launch a share ownership scheme exclusivel­y for black staff.

Sasol plans to sell 25% of its local operations to mainly qualifying black employees in a R21bn deal that would be vendor-financed by the firm.

The conciliati­on hearing followed earlier Commission for Conciliati­on, Mediation and Arbitratio­n (CCMA) hearings by the two parties held on May 9 and 25.

This followed an initial referral of a discrimina­tion dispute to the CCMA by Solidarity that it subsequent­ly withdrew.

Under SA’s black economic empowermen­t rules, companies are required to meet quotas on black ownership, employment and procuremen­t as part of a drive to reverse decades of exclusion under apartheid.

Solidarity called the scheme, dubbed Khanyisa employee share ownership plan (ESOP), “blatant discrimina­tion against loyal Sasol employees”.

But Sasol defended the scheme on Thursday.

“The Sasol Khanyisa ESOP is not a company benefit or compensati­on scheme. It was specifical­ly designed to address the ownership component of the broad-based black economic empowermen­t (B-BBEE) codes and therefore primarily focuses on the inclusion of black employees, as defined by the codes,” Sasol said.

“As a responsibl­e South African corporate citizen, it is Sasol’s ethical duty to take decisive action to redress the injustices of SA’s past.

“Sasol Khanyisa, Sasol’s new B-BBEE ownership structure, is one of the key focus areas of the company’s broader transforma­tion strategy,” the company said.

It said transforma­tion was an important ethical, social and business imperative for Sasol.

Solidarity, which represents predominan­tly white workers, said it would seek a mandate from members to strike.

Under the country’s labour laws the union has to give Sasol at least 48 hours’ notice before going on strike.

Both parties will reconvene on July 4 to establish picketing rules that would apply in the event of a strike.

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