The Legal SA

R183-million Spur Lawsuit

The Johannesburg Stock Exchange listed Spur Corporation will face a R183-million lawsuit in October 2023.

The lawsuit was filed by food supplier GPS Foods which alleges that the Spur Corporation pulled out of a joint venture to establish a rib supply facility in Cape Town in the Western Cape.

GPS Foods contends that the Spur Corporation in 2017 entered into and concluded an oral agreement to create the rib supply facility before pulling out at the eleventh hour.

In it's filing, GPS Foods submits that it incurred losses in the millions of Rand in start-up capital when the Spur Corporation reneged on the agreement in 2020.

GPS Foods also says that over 100 of it's employees lost their jobs as a result of spur going back on it's word.

The Spur Corporation however denies the allegations and has vowed to spare no expense to vigorously fight the legal battle.

The case is set to be an intricate one as it involves the late Pierre Van Tonder, who was the CEO of the Spur Corporation at the time.

Van Tonder shot himself in the head and died in a Cape Town hospital at the age of 62 on Sunday evening, 9 May after resigning his position in 2020.

GPS Foods contends that it was Van Tonder who entered into the agreement thereby legally tethering the entire Spur Corporation to the deal.

Van Tonder was with the Spur Corporation for 40 years and lead the group for 24 years, first as MD then as CEO and helped the group expand.

Under Van Tonder's leadership, the Spur Corporation bought upmarket steakhouse chain Hussar Grill and burger franchise RocoMamas.

Written by Sabelo Tiro, financial analyst and writer.

NUMSA, Gautrain Reach Wage Agreements

09:30, Wednesday, 05/07/23, Johannesburg.
Gautrain workers have welcomed an 8% above inflation and across-the-board wage increase set to be applied from the end of this month.

The National Union of Metalworkers of South Africa (NUMSA) and the executive management of the Gautrain train service reached the agreement after three grueling months of negotiations.

NUMSA has also demanded that Gautrain employees receive increases to housing, transport and KPI allowances.

The negotiations between NUMSA and Gautrain had deadlocked early last month leading to Gautrain workers going on strike last Friday.

The new wage increase agreement for Gautrain workers is valid from the first of this month and includes a 10% increase in housing allowance, a 5% in a transport allowance.

KPI bonuses are increased by R500 while nightshift workers have been granted R35 per hour more.

NUMSA has announced that Gautrain workers will no longer be charged for using the Gautrain.

NUMSA Spokesperson Phakamile Hlubi-Majola says that securing these increases will provide some relief to workers affected by the rising cost of living.

Written by Sableo Tiro, financial analyst and writer.