Auquan's Weekly Wrap | 7th- 13th January: What you might have missed
Turkish Competition Authority investigates Nestle, GlaxoSmithKline, Pepsi and more for potential violations of competition laws. More retailers exposed for forced labour in Bangladesh.
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Turkey Anti-Competitive Pricing Probes
The Turkish Competition Authority is investigating several companies including Nestle, Danone, Eti, Horizon, GlaxoSmithKline, Coca-Cola, Pepsi, Frito-Lay, Red Bull, Haribo, Kent Gıda, for possible violation of competition laws in the "exchange of information sensitive to competition". The regulator's board found the findings serious and sufficient to launch a follow-up investigation into the said firms. This follows previous scrutiny for the likes of Whatsapp and Meta over the last year.
- Competition Authority Takes Action! Investigation into Nestle, Danone, Eti, Horizon
- Turkish watchdog fines 13 suppliers $47M over price-setting cartel | Daily Sabah
- Turkey fines e-scooter app for false information in abuse probe
- Competition Authority mulls penalty on WhatsApp
South Africa Power Sector Woes
South Africa's power sector is facing major challenges, with power cuts and financial troubles at state-owned utility Eskom. The company has failed to get approval to increase power tariffs by a third, and regulators have approved an 18.65% power price hike. Eskom's financial problems have been worsened by systemic corruption and a failure of maintain its power plants properly. The South African government is seeking ways to address the issue, including seeking private sector investment and increasing the use of renewable energy.
- South African power cuts worsen
- South African regulator approves 18.65% power price hike for Eskom
- Eskom Fails to Get Approval to Increase Power Tariff by a Third
- Chief executive of South Africa's Eskom quits as blackouts surge
- South Africa Urgently Seeks Funds for Diesel as Power Cuts Widen
Forced Labour in Retail
In recent developments, major retailers such as Lidl, Zara’s owner Inditex, H&M and Next have been accused in a report by the UK-based fair trade campaign group Transform Trade of paying garment suppliers in Bangladesh during the pandemic less than the cost of production, leaving factories struggling to pay the country’s legal minimum wage. There have also been allegations of "sham" investigations into forced labour at a former Tesco supplier in Thailand. In addition, the US and Japan have launched a task force to promote human rights and international labour standards in supply chains, with a focus on China's treatment of Uyghur Muslims.
- Lidl, Zara's owner, H&M and Next paid Bangladesh suppliers less than the production cost
- Report: ‘Impact of Global Clothing Retailers’ Unfair Practices on Bangladeshi Suppliers During COVID-19‘
- Japan and U.S. launch task force on rights and labour standards in supply chains
- Thai police accused of 'sham' forced labour inquiry at former Tesco supplier
- Investors under pressure on Uyghur forced labour
Dollar General Stores Workplace Safety Risk
Dollar General Stores have been facing increasing concerns over workplace safety, with multiple locations cited for violations and fines by OSHA since 2016. This trend has continued to build and picked up in November 2021, with fines ranging from $200,000 to over $2.7 million and several stores forced to close due to violations. Recent employee protests have also been reported, with workers protesting for better pay and improved safety in the workplace.
- Profit Over People: Alarming trend continues at Dollar General
- Dollar stores profiting billions, fined millions on employee safety violations, workers protest for better pay & safety
- Dollar General hit with OSHA violations at Thomasville store
- Dollar General Faces $1.68 Million In Fines From OSHA For Worker Safety Issues
- Dollar General Stores Cited for Emergency Exit Hazards
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