Canadian Investors Raise Concerns Over Naspers’ New CEO’s Labour Practices

In a significant development that has caught the attention of the global technology and investment communities, a Canadian-based share association has confronted Naspers, a tech investment giant, over concerns regarding the labor management policies employed by its newly appointed CEO, Fabricio Bloisi. The conversation came to a head at the recent Naspers Annual General Meeting (AGM), hosted in South Africa.

The Shareholder Association for Research and Education (SHARE), which possesses strong ties to trade unions in Canada, is apprehensive regarding the labor practices Bloisi implemented during his tenure with the Brazil-based food delivery service, iFood. iFood dominates the Brazilian market and is a significant part of the Naspers portfolio.

SHARE expressed unease over the possibility of these practices being extended to other entities under Naspers, which holds substantial stakes in global companies such as Delivery Hero and Swiggy, as well as ownership of South Africa’s Mr D Food. These concerns are grounded in allegations from SHARE regarding the working conditions for delivery workers under the iFood umbrella — conditions characterized by long hours, insufficient wages, and lacking health and safety regulations.

At the AGM, Naspers chairman Koos Bekker extended an invitation to SHARE to monitor and evaluate how Naspers group addresses labor conditions for their expansive network of delivery workers. This offer appears to be in direct response to the challenge presented by the Canadian association and aligns with Bloisi’s own commitment to improving social impact within the company’s operations.

Bloisi, who ascended to Naspers' top position in early July, proactively addressed the labor management critique, emphasizing the importance of protecting workers and projecting iFood as a leader in advocating for better labor standards in Brazil. He also hinted at ongoing efforts to collaborate with the Brazilian government to create jobs that balance social responsibility with the opportunities presented by technological innovation.

Despite the open invitation for supervision and the CEO’s reassurances, skepticism lingers. The allegations put forth by SHARE depict a contrasting scenario where iFood, under Bloisi’s leadership, not only resisted courier improvement efforts but also engaged in actions that may have degraded working conditions further. Moreover, the company reportedly rebuffed attempts at legislative changes aimed at shielding delivery workers’ rights.

As the global gig economy continues to expand, the maintenance of fundamental labor rights remains a pressing topic. SHARE’s representative Maria Claudia Orozco posed pointed questions at the meeting concerning the oversight measures that Naspers' board intends to implement, to safeguard these rights under its burgeoning platform of companies.

Bekker’s proposal for a thorough report at the next year's meeting is an indication of the gravity of the situation. The pledge for transparency is welcomed by stakeholders, who view the confrontation of these deep-seated issues as vital to the sustainable growth of the company. The tech world watches as Naspers — under its new CEO — commits to reshaping its approach to a socially sound future that harmonizes technological progress and essential labor protections.