FEDUSA OMREB/IBSA Welcome Old Mutual Listing
26 June 2018
The Federation of Unions of South Africa (FEDUSA) and our Affiliate Old Mutual Representative Employee Body – Insurance Banking Staff Association (OMREB/IBSA) have welcomed the listing of Old Mutual Limited on the Johannesburg Stock Exchange as a great vote of confidence in South Africa and the African continent at a time when the economy is facing serious challenges relating to low growth, high unemployment and the need to eliminate poverty and reduce inequality by 2030 according the National Development Plan.
Old Mutual Limited announced that there would be no involuntary job losses as a result of the corporate restructuring, which OMREB/IBSA President Vicus Kammies and acting General Secretary Luke Bradley welcomed on behalf their members, the employees as a body as well as in the interests of the industry and the economy as a whole.
“This listing will boost confidence in the South African economy, strengthen the investment goal that was set by President Ramaphosa and contribute greatly to job creation. FEDUSA demands that Old Mutual play a more meaningful role in human capital development by assisting unemployed graduates gain workplace experience through the Youth Employment Service (YES)” says FEDUSA General Secretary Dennis George.
It was announced that the listing is expected contribute about $10 billion to the South Africa economy. FEDUSA also supports the condition that Old Mutual Limited allocates R500 million to a new ring-fenced Enterprise Supplier Development Fund black economic empowerment (BEE) ownership, decent employment creation and enterprise supplier development.
The listing of Old Mutual Limited is important for the South African economy because shares can be traded on a stock exchange. The fundamental role of the stock exchange is to bring together in one market place providers of capital and companies that require capital. Providers of capital such as worker pension funds earn a return on their investments through dividends and capital growth, thereby increasing the overall wealth of South Africans, while the companies in which they invest provide jobs and propel the achievement of higher economic development of the country, concluded George.
FEDUSA is the largest politically non-aligned trade union federation in South Africa and represents a diverse membership from a variety of sectors in industry. See www.fedusa.org.za for more information.
For interviews please contact:
FEDUSA General Secretary
084 805 1529
Acting General Secretary OMREB/IBSA
FEDUSA Media Officer
072 637 8096