JOHANNESBURG – The SA Clothing and Textile Workers’ Union (Sactwu) has said that it believed that food and beverage company AVI Limited may have breached the commitments it made to the Competition Tribunal following its decision to close the Cape Town-based factory footwear brand Green Cross.
JSE-listed AVI said last week that it had stopped all manufacturing operations at the Green Cross facility after a review indicated that its operating model, which relies on a significant volume of local manufacture, was uncompetitive.
Etienne Vlok, Sactwu’s national industrial policy officer, said the closure would result in 320 job losses and would impact 1 500 employees and their dependants.
“The union has now asked the competition authorities to investigate this act of corporate sledge-hammering by AVI,” Vlok said.
AVI acquired Green Cross, the 40-year-old footwear brand, for R382.5 million in 2012 to bolster its premium-branded footwear and apparel portfolio, following the acquisition of Spitz in 2005.