MISA expresses shock over alleged two-decade price-fixing by PG Glass and Glasfit
Two of the country’s top automotive glass suppliers, PG Glass and Glasfit, are in the firing line
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The Motor Industry Staff Association (MISA) says it is shocked and deeply disappointed to learn that PG Glass and Glasfit allegedly engaged in price-fixing of automotive glass products for more than two decades.
This follows the Competition Commission’s announcement that it has referred a complaint against two companies operating in the automotive glass sector to the Competition Tribunal for prosecution. The Commission is seeking an order declaring that the companies contravened a section of the Competition Act and are liable for the payment of an administrative penalty equal to 10% of their respective annual turnover.
“This would have had a severe impact on consumers and the broader retail motor industry, resulting in higher prices,” said MISA Chief Executive Officer: Operations, Martlé Keyter.
MISA is the majority trade union representing more than 75,000 members within MIBCO, the Motor Industry Bargaining Council. PG Glass and Glasfit fall under the ambit of MIBCO.
The two companies are suppliers of laminated and toughened automotive glass in South Africa and compete in the market for the distribution and fitment of automotive glass.
They are alleged to have entered into an agreement and/or engaged in a concerted practice to fix the prices of automotive glass products supplied to end-user customers and insurance companies in South Africa since 2004.
According to the Commission, this conduct constitutes price-fixing in contravention of the Competition Act.
The Commission’s investigation found that the two companies allegedly had a longstanding agreement to increase the price of automotive glass supplied to customers by the same percentage each year.
“Automotive glass forms part of industrial intermediary products, a priority sector for the Commission. The dismantling of the alleged cartel will contribute towards fairer pricing of automotive glass for the benefit of consumers as well as insurance companies,” said Competition Commissioner Doris Tshepe.
The Commission is seeking an administrative penalty of 10% of the annual turnover of the firms involved, covering automotive glass supplied to consumers and insurance companies.
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