Deryck Spence, executive director of SAPMA, says the Competition Commission was approached by SAPMA to obtain full clarification of the Commission’s stance on the SAPMA system, which calls for its members to pledge production and other forms of assistance to fellow members should these encounter disastrous manufacturing disruptions, such as fires or similar setbacks. “It’s a voluntary pledge with strong mutual benefits for the association’s members, and it helps keep insurance rates down, for a start. It is, thankfully, not required for most of the time,” explains Spence.
He says the Competition Commission’s detailed reply states that it has no objection to the SAPMA Risk Management Pledge as long as members strictly adhere to legal requirements regarding information sharing, toll manufacturing, and competitive collaboration, and as long as the system does not detract from marketing opportunities, nor is anti-competitive.
“SAPMA is pleased to officially learn that the Risk Management Pledge does not fall foul of the Competition Act. SAPMA will self-police members’ actions in terms of our Risk Management Pledge system,” adds Spence.