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RAY Alexander Elizabeth Mafikeng
RAY
Alexander
ELIZABETH
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Oscar Mpetha Liz Abrahams
OSCAR
Mpetha
LIZ
Abrahams
Chris Dlamini Jay Naidoo
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Naidoo

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Press Room  |  Press Statements

Last updated: 31 October 2018

FAWU Hails Investigation the Competition Commission into I & J, Karan Beef

31 October 2018

The Food and Allied Workers` Union commends the Competition Commission for its decision to prosecute Irvin & Johnson ( I & J) and Karan Beef for anti-competitive conduct in contravention of the Competition Act.

Over the years, FAWU has called for harsher penalties against well-known companies in the food industry, like Foodcorp, Premier
Foods, Pioneer and Tiger Brands, which were found guilty of cartel conduct. The fact that Karan Beef has already admitted guilt in this case, raises the probability of guilt on the part of I & J significantly.

Despite the risk of prosecution, some companies still engage in cartel activities and poor consumers nearly always pay the price for these criminal acts. In a country where many battle to put food on the table, this displays a lack of moral responsibility towards the poor.

Monopoly of the cost, availability and distribution of food for pure financial gain should not undermine our right to food. The cost of living is already unbearable for most and any cartel conduct must be seen as a threat to food security.

While pleased that the National Assembly passed the long-awaited amendments to the Competition act, we still believe those responsible should go to jail given that the current system of paying penalties hardly seems effective.

Our Constitution guarantees the right to food and government should impose harsh punishment on guilty parties to serve as a serious deterrent to others. Food must be affordable and accessible in order to address inequality, poverty and malnutrition in our communities.

We laud the Commission`s work in exposing cartel conduct and hope its enhanced powers will increase its efficiency.

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