18 July 2014

South Africa: Num Unhappy With Tsogo Sun Awarding R200 Million Unsecured Loan to Five Executives

press release

The National Union of Mineworkers (NUM) is concerned and disgusted by the decision of Tsogo Sun to award an unsecured loan of R200 Million to its five executive directors on an interest-free basis with no fixed repayment date.

The article published by Business Day on Wednesday July 16 2014 titled "Tsogo awards five directors R200m interest-free loan to buy shares" even questioned why the majority of employees were sidelined or overlooked.

As the NUM, we do not think it was necessary for Tsogo Sun to empower the five rich individuals. We believe that Tsogo Sun should have empowered its 9,492 employees. If R100m of the R200m was shared across 9,492 employees, each worker would get at least about R10, 500 worth of shares.

This empowerment of the few individuals is an insult to the ordinary employees of the company.

The lowest paid workers continue to earn poverty wages and Tsogo Sun does not see it necessary to empower these exploited, hard working and vulnerable workers.

The NUM is calling on the South African Commercial, Catering and Allied Workers Union (SACCAWU) and the Food and Allied Workers Union (FAWU to take the fight to Tsogo Sun and make sure that this empowerment of the few rich individuals does not happen.

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