Business: Rebate System Must Be Exposed – Solidarity
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Following talks with former employees of food producers and supermarket groups, Solidarity has identified the rebate system as a problem area in establishing food prices. Rebates are negotiated on a confidential basis between manufacturers and supermarket groups, and these rebates are paid by the suppliers to the supermarket groups. Comprehensive information about the rebates is not released by the producers and supermarket groups.
According to Jaco Kleynhans, spokesperson of Solidarity, the trade union’s monthly food price survey, which has been carried out at three of South Africa’s largest supermarkets since January this year, has shown that food prices are remaining at high levels and that lower input costs are not passed on to consumers.
Solidarity, who in a recent meeting with the Competition Commission made an urgent plea for an investigation into the activities of supermarket groups, has praised the commission for its decision to go ahead with such an investigation.
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