Moses Mackay
15 January 2004
The Food and Allied Workers Union (Fawu) says the South African government has shown its willingness to intervene if Parmalat SA is to be sold.
This came out of an urgent meeting between the union and Parmalat SA directors at the company's head offices in Stellenbosch on Tuesday.
The meeting follows a fraud scandal that has rocked the Italian company, and seen the arrest of several of its corporate officials and auditors.
The union called for a meeting because of fears of job losses following the provisional liquidation of Italian Parmalat and its placement under judicial management.
A turnaround specialist and newly appointed administrator of Parmalat in Italy, Enrico Bondi, has 180 days to put in place a rescue plan.
Parmalat SA Chief Executive Fernando di Gaetano was not at Tuesday's meeting.
At a press conference at the Cosatu offices in Salt River after the meeting, Fawu president Patrick Johnson said the South African government had shown its willingness to intervene if Parmalat SA was about to be sold.
He said an urgent meeting would soon be convened between the directors-general of the departments of trade and industry and agriculture and the company's directors.
Johnson also said the union would continue to meet the company's directors to ensure a record of understanding was signed and would be reporting back to its members.
Fawu deputy secretary-general Kalishi Masemola said if Parmalat SA was to be sold the union would insist on a sale to an international company. They would oppose a sale to a local competitor because it could lead to job losses and rationalisation.
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