Union welcomes Foodcorp's bread cartel fine

Labour union Food and Allied Workers' Union (Fawu) has welcomed a fine imposed on bread maker Foodcorp for admitting a role in bread price fixing, it said on Tuesday.

"Fawu welcomes the move by Foodcorp regarding its admission of guilt and payment of fine for their involvement in the morally repugnant price-fixing scandal," it said.

The union further called on President Kgalema Motlanthe to sign the amended Competition Act into law. The amended version holds directors personally liable for transgressions.

The union's comments follows news on Monday that Foodcorp has agreed to pay a R45.4 million fine for its involvement in the bread cartel that rocked the country late 2007.

Source: I-Net Bridge

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