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Union wants to untie AVI-Green Cross merger over job cuts

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Sactwu tells the Competition Commission that commitments made before the takeover have been broken

A Green Cross store at Greenacres Shopping Centrein Port Elizabeth. File photo: SUPLLIED

Last month AVI shut down the Green Cross factory and retrenched 320 footwear workers. Green Cross continues to operate but sells only imported footwear. In a letter to the competition authorities, the union contends that “job losses and factory closure are a direct outcome of the merger”. The union said that this was either the unintentional outcome of AVI’s lack of capacity and expertise in the manufacturing of non-FMCG or was an intentional strategy over time by AVI.

AVI, at the time, denied that it would retrench employees as a result of the merger, and the tribunal “found no evidence from the filings which contain AVI’s business plans for Green Cross that it will”.

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