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Protesters at AGM: Much hot air, little to show

Published

10 years ago

November 27, 2014

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ANT KATZ

But, in the end, the institutional shareholders (who really are the ones who count) gave Woolworths’ management and board a solid pat on the back – seeing through all the smoke and mirrors that a small band of activists utilising a large contingent of rent-a-crowd supporters could throw at them.

Woolies AGM live To be sure, Woolworths’ annual general meeting (AGM) on Wednesday was no picnic. It was continually disrupted by shareholders demonstrating against the retailer’s purchase of pretzels, figs and pomegranates from Israel.

The anti-Israeli protesters who attended the AGM were frustrated at not being able to have an impact of Woolworths despite their constant disruption, as shareholders were frustrated. were disappointed after their attempts were foiled by the board. But Woolworths Chairman Simon Susman had his work cut out for him at the packed AGM, where some shareholders and protesters wanted clarity on Woolworths’ ties with Israel.

Neither was there any apparent concern about the BDS-led demonstrators outside the building. Read how BDS were so rattled by Woolworths’ success in court this week that they became rattled and “obfuscated the truth” to, and clearly misled their members in a press release on Tuesday: All this for Figs, Pretzels & a few Pomegranates

Ample support for Israel at AGM

But Israel had ample supporters at the AGM as well. An Internet blogger said: “…the boycott should then be extrapolated to other countries like Zimbabwe (which is also a beneficiary of Woolworths’ imports) since Zimbabwe is also guilty of human rights infringements”.

LEFT: Pro-Palestinian demonstrators protest outside the Cape Town head office of the retailer where the AGM was taking place.

BDS-led anti-Israeli campaigners continually interrupted yesterday’s meeting in Cape Town, questioning how Woolworths would respond to the risk of a widespread boycott and seeking the opinion of directors up for re-election.

Another 40-odd people protested outside Woolworths’ headquarters where the meeting was being held.

BDS’ campaign aims to force the retailer to stop trading with Israeli companies. As a demonstrator read out the names of Palestinians killed in fighting Israeli forces in the recent Gaza conflict, others shouted: “Woolworths supports genocide!”

They also made their feelings clear in a host of anti-Israel placards they were carrying.

BDS has become an active shareholder and has teamed up with other shareholders to try to force South Africa to end its R12 million a year trade with Israel.

One of the activists, Marthie Momberg said in the AGM she was “shocked at how we, as shareholders were treated in the AGM”.

Protesters’ hot air came to naught

A BDS protester, Abram Agulhas, said: “We don’t want a two-state solution, we want a one-state solution”.

Another, Surgeon Masooane, former deputy chairman of Sasco in Gauteng, said: “If they say it’s a mere three products (they buy from Israel), why don’t they stop buying them in solidarity and put an end to what they view as an onslaught against them by BDS?”

Woolworths said trading for the first six weeks of the second half of the financial year had been positive “and we expect sales growth to be broadly in line with the first half”.

On its “Ethics and Integrity” it said: “A strong value system has always been at the core of the WH Group”.

“We have repeatedly stated we do not source from the occupied territories,” Chairman Simon Susman told shareholders at the meeting. Susman was referring to complaints from DAS members and affiliates who had bought Woolworths shares ahead of the meeting to put pressure on management.

These were led by the SA arm of the US-based NGO Boycott Divest Sanction (BDS). Woolworths management plans to meet with BDS, which has led calls for a boycott since August, Susman said. CEO Ian Moir didn’t attend the annual meeting after injuring both legs in a fall in Sydney.

Woolworths bought David Jones of Australia for R22 billion in August.

RIGHT: Respected financial publishing house Bloomberg show that Woolworths’ shares have risen from a low of R5,615 in Feruary to a high of R8,174 this month: CLICK HERE FOR DETAILS

While calls to boycott Woolworths are affecting sales at some stores and staff and customers have been intimidated, the retailer won’t buckle to pressure to stop stocking Israeli produce, according to Chairman Simon Susman.

Cannot concede to one interest group

“The minute you concede to one interest group, particularly a political interest group, I promise you there are 15 others,” Susman told reporters after the meeting. “It’s not for us to play politics. Our job is to provide our customers with the range of products that they expect. We have many divergent customer groups.”

Demonstrators bought Woolworths shares ahead of the meeting to entitle them to speak at the event and put pressure on management, Boycott Divestment Sanctions South Africa said last week. The protesters have the backing of the Congress of South African Trade Unions, the country’s biggest labour group that’s affiliated with the ruling African National Congress.

Intimidating staff forced WW to get Interdict

Woolworths management plans to meet with BDS, which has led calls for a boycott since August, Susman told shareholders. “Overall it’s very difficult to see a pattern” as to what impact the boycott call will have, he said. “They have been very threatening and very intimidating to both staff and customers.”

Initial indications are that Woolworths could meet its target of saving at least R1,3-billion annually in five years by increasing efficiency at the newly-acquired Australian chain (David Jones), Susman said.

“The things that we felt should be done, can be done,” he said. “It’s a good business and its got a brand equity which is quite remarkable.