Competition Commission of SA

[Fred Smith]

I was the owner of a company called Ma Baker Foods which was bought by Rhodes Food Group. A condition of the acceptance of the sale agreement by CCSA was that RFG would not retrench any of my employees for a period of 3 years, save for 15 that were specified. RFG have since either retrenched or forced to leave the company over 200 of my employees. Many of whom were constructively dismissed by being "transferred" elsewhere or were offered lower paying jobs etc. All our branches outside Natal were closed and about 60 employees took so called "voluntary severance packages" which were not voluntary at all as alternative employment was not offered.

I am battling to get justice for my former employees. Articles in Business Day about this issue have had no effect on RFG and my complaint to CCSA is ongoing but showing no signs of resolution.

Are there any alternatives? My staff can't afford legal representation and RFG have complied with the LRA.

[AmithS]

When did this take place? i.e. how long ago...

[Fred Smith]

The agreement was finalised in March 2017. The condition imposed by CCSA was a 3 year moratorium on retrenchments.

https://www.businesslive.co.za/bd/companies/2018-09-21-row-over-retrenchments-at-ma-baker-bubbles-over/?fbclid=IwAR02Q20bcxKZJ9ioKkXj7tsMYu9kC9xXOxYp97AtVZzeZcaN216kNhI1fsM

The arguments given by the CEO of RFG in this article in Business Day are invalid.

My real name is obviously Wayne Lund.

[Dave A]

I suspect that the Competition Commission might only levy a fine if it finds the conditions it imposed have been breached - the prospects for a restoration order from them seem remote...

[Fred Smith]

Dave, I suspect that you may be correct, but Rhodes Food Group may try to avoid the fine by re-instating some employees. They are currently trying to buy a snack foods business from RCL Foods. They will need approval from the CCSA.

I have just had a promising telecom with Wiri Gumbie, the Principal Analyst at CCSA. I obviously can't disclose details but he will be putting some very relevant questions to the CEO of RFG.

This guy is really switched on. The type of person that gives one renewed hope for the future of SA.

[Dave A]

Hope it works out, Wayne. Kudos for trying anyway - all too easy to take the money and run.

Couldn't help thinking some about how we (SA) keep losing top entrepreneurs and their capital while considering your situation above, though.

[Fred Smith]

Dave, SA is certainly losing a lot of good people due mainly to the crime, I believe.

My situation is a little different as my non-South African ex wife decided to leave SA and go back to Australia, taking my minor child (yes, at 66 I really do have a 12 year old). I missed her terribly and decided to move to Oz because of her. I will not be staying here when she turns 18, although I do like Australia. Perth is too remote for me.