NUMSA says SA tyre bosses should be prosecuted

ERJ staff report (DS)

Johannesburg, South Africa -- South African union leaders have called for the government to prosecute individual company directors and their CEOs for colluding and price-fixing.

In a statement, NUMSA, the South African Mine workers' union said, "The(NUMSA) notes the decision by the Competitions Commission recommending to the Competition Tribunal to impose an administrative penalty of 10 percent turn-over on Apollo Trye South Africa, Goodyear South Africa, Continental Trye South Africa; and the SA Trye Manufacturers Conference for collusive tendering, fixing prices, information exchange and market allocation."

The statement continued, "We are firmly of the view that the Competitions Commission recommendation to the Competition Tribunal to impose a fine is toothless and ineffective. This is informed by our concerns that any fine on the four companies, however the amount, does not hit those directly responsible for the price-fixing. The fine will come from the companies' coffers and could even be recouped by increasing prices, which makes the whole exercise a mockery."

It concluded, "we demand that individual company directors and their CEO's to be dismissed and face prosecution for colluding and price-fixing. This will send a strong message that our peoples government will not tolerate corruption wherever its manifest itself."

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Press release from NUMSA