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By Mduduzi Mbongwe, SACCAWU Deputy General Secretary
The Shoprite Group of Companies is Africas largest food retailer, having
grown from just 8 stores in 1979, to more than six hundred outlets in
fifteen African countries currently. It comprises of the following entities:
SHOPRITE CHECKERS SUPERMARKETS GROUP, which is made up of Shoprite Supermarkets,
Checkers Supermarkets, Freshmark (a fruit and vegetables procurement
division with 9 fresh produce distribution centres), OK Furniture outlets,
Checkers Hypermarkets, House and Home stores, USave stores, Rainbow Finance,
Hungry Lions fast foods outlets and a Property Division
OK FRANCHISE DIVISION which procures and distributes stock to Sentra
convenience stores, 8 till Late outlets, OK Mini-mart convenience stores,
OK Foods Supermarkets, Mega Save wholesale stores, Value stores, OK Grocer
stores and some 43 Buying Partners
The Company recorded a turnover of R24, 8 billion for the period ending
30 June 2003, an improvement of well over R1 billion compared to the
turnover of R22.11 billion for the period ending 30 June 2002. It employs
about fifty thousand workers within the Republic of South Africa and
like most retailers employed the majority of them on a casual basis until
the introduction of the Wholesale and Wholesale and Retail Sectoral Determination
Act, which replaced casuals with variable time employees. This piece
of legislation came about as a result of concerted efforts by SACCAWU
to address the shocking conditions that casuals are exposed to. It is
common cause that casual workers are the most vulnerable and exploited
component of the working people, particularly in the retail sector and
it is not uncommon to see some of these workers taking home far less
that R100.00 a week.
THE RETAIL SECTORAL DETERMINATION ACT
The Wholesale and Retail Sectoral Determination Act number 9 (the Determination),
a determination which regulates minimum wages and conditions of employment
within the Retail and Wholesale sector, was gazzetted on the 19th of
December 2002 and came into effect on the 1st of February this year.
Whilst the Determination has a number of shortcomings, we hailed its
introduction as one step in the right direction as it effectively abolish
casual labour and replaces same with variable time employment and further
introduced the concept of proportional benefits for this category of
workers. In terms of the Determination, these workers have an option
to choose a higher premium or proportional benefits. Unlike its predecessor,
the Wage Determination 478, the Wholesale and Retail Sectoral Determination
falls short of stipulating the ratio of full time to part time workers
within companies but, significantly, it covers all workers within the
Republic including workers in the former TBVC states. The Determination
also increased minimum wages which had remained stagnant since 1997.
SACCAWU felt that the implementation process must be negotiated in all
Companies where we are organized. This was aimed at safeguarding the
interests of workers, given the history of some employers within the
sector and the tendency to vary down wages and conditions where they
are already above the minimums imposed by the law. Shoprite Checkers
requested the Unions support for a delay in implementing the determination
citing an excuse that it will take them time to adapt their admin systems.
They undertook to back date benefits due to workers, resulting from the
implementation of the Determination, to the 1st of February. The Union
supported them on the basis of negotiations ensuing prior to implementation.
The parties have been engaged in dialogue since March this year and
throughout this process the Company did not enter into meaningful negotiations
with us. They later requested us to prove that we represent casual employees
through signed stop order forms, which we were able to do. They continued
further excuses to avoid meaningful engagement and in fact went on to
compel workers to sign draconian contracts of employment, pretending
that such contracts was informed by their quest to comply with the Determination.
What Shoprite Checkers did was in fact replacing old and better contracts
with these new and unacceptable contracts. The majority of variable time
workers signed such contracts as they were threatened that same is the
prerequisite for them to be scheduled for work.
Such draconian contracts included the following clauses amongst others,
- Compulsory HIV tests,
- Reduction of years of service,
- Reduction of the hourly rate of pay,
- Credit checks,
- Normal rate for Sunday work,
- Purchasing of Uniforms and name badges
from the Company
- Compulsory membership of the Companys Retirement
Fund.
This unilateralism provoked workers to an extent that some members embarked
upon unprotected strikes as a direct result of this arrogance. The Union
was eventually compelled to declare a dispute in view of the Companys
intransigence on the provisions within the proposed contracts. The dispute
was referred to the Commission for Conciliation Mediation and Arbitration
(CCMA), where it remained unresolved and the CCMA accordingly issued
a certificate confirming that the dispute was not resolved and that the
parties to the dispute may embark upon protected industrial action to
pursue the matter.
In a further attempt to resolve the matter amicably, the Union sought
the opinion of Anne-Marie van Zyl, an Executive Manager for Employment
Standards within the Department of Labour. Her written comments were
forwarded to us on the 29th of July and such comments consistent with
our argument and confirmed it as correct. Her letter is attached hereto.
In the interim, the Company saw it fit to pay its CEO an annual salary
of R5.2 million, a bonus of R3 million and a further R95 000 for the
so-called other benefits. Workers were angered by this state of affairs
and openly declared that they are tired of being treated like dirt, being
paid slave wages, made to accept down varying of the already appalling
wages and conditions of employment without any job security. It is on
that basis that they resolved to confront the Company head-on and unleash
their collective anger and strength. Indeed, they have the support of
countless organisaions and ordinary citizens.
SACCAWU DEMANDS
Workers entered into a protected strike and vowed to fight to the bitter
end for the achievement of their reasonable demands and never to back
down until the following demands have been met by the Company:
- The immediate re-instatement of the old hourly rate of pay for
variable time employees,
- Recognition of the correct length of service for all categories
of workers,
- A guaranteed minimum of 40 hours of work per week for former
flexi-timers,
- A guaranteed minimum of 27 hours of work per week
for other variable time employees,
- The right to belong to a Retirement Fund of workers choice
(including the right to belong to the SACCAWU National Provident
Fund),
- Scrapping of all oppressive clauses, including compulsory
HIV tests, from the contracts of employment,
- That the Company
should stop Unilateralism and practise Cordial Industrial Relations.
As it may be observed, demands (c) and (d) above differ in terms of
minimum hours demanded and this is informed by the fact that Flexi-Time
workers were specifically covered by the Flexi-timer Agreement entered
into between the Union and the Company. The Company has since terminated
the said agreement unilaterally.
The demands are primarily motivated by the need for equity and fairness
at the workplace and are also consistent with the Employment Equity Act
and the Supreme Law of the Land, the Constitution of the Republic.
THE STRIKE
After the Union had served Shoprite Checkers with a forty eight (48)
hours notice of strike, the Company responded by issuing a notice of
proposed lock-out. At the same time, the Company issued a communiqué to
workers in an attempt to talk and coerce them out of the pending strike,
threatening that Shoprite Checkers cannot guarantee work for those who
join the strike.
This did not break to spirit of workers, who were actually mobilized
by the same sheer arrogance in this age and era of sound industrial relations.
Shoprite did not have a choice but to propose that the parties meet to
define strike rules, which was done through the CCMA.
Surprisingly, the Company only realized that they blundered in agreeing
to the rules in their form and content once the strike commenced. The
Union was immediately flooded with letters from all over the Company
claiming that our members were not complying and we saw this, from the
onset, as a build-up towards a potential opting out from the agreement
on the rules. We also flooded the Company with reports of their managers
and/or non-striking workers intimidating and harassing striking workers.
Seeing that the above did not work, the Company sought relief from the
Courts of Law claiming that members were interfering with the customers.
We are not only disappointed but also feel betrayed by this contemptuous
treatment that such process took place whilst the parties were locked
in a meeting trying to find a solution and the Company did not even have
the courtesy to inform us. Some ill-informed Judges granted them some
interim orders restraining workers from picketing within 100 metres in
some areas and 50 metres in others. This was some kind of open invitation
for police brutality and indiscriminate arrests of our members. Since
the first order was granted in the KZN Region, we challenged same and
workers recorded yet another victory as the order, insofar as it relates
to the distance to be kept by picketers, was discharged / reversed and
members went back to the 5 metres. On closer scrutiny of the orders,
it emerged that such orders are in fact full of contradictions and also
incomplete. For example,
- the order makes reference to stores but the names of such stores
are not mentioned
- the order restrains members to a distance of 100 metres
in one part and 50 metres in another
- the same order then orders
picketers to comply with the Picket Rules Agreement, which states
that picketers must not picket within
5 metres
We have already instructed our Attorneys to challenge and ask the Court
to set this fraudulent order aside and are also assessing the implication
of the above observations on the arrests and any other event sparked
by the said orders. We also condemn those members of the South African
Police Services who have used brute force to enforce this fraudulent
and illegitimate order as well as some landlords hosting Shoprite Checkers
in their Malls and/or Shopping Centres, for coming to the defence of
Shoprite by pretending that picketers cause some imagined disorder in
such places. We are planning to bring these injustices to the attention
of the relevant ministries for their urgent attention.
We are convinced that the Company resorted to such dirty tactics due
to the impact of our current strike, although they want the world to
believe that its business as usual in their stores. We are also convinced
that the Company is trying to break the fighting spirit of our members
in the course of this important strike. Unfortunately for them, this
is also not working as members remain resolute.
After a marathon meeting of four days, resulting from the Companys
request, the parties still have not agreed on guaranteed minimum hours
and reinstatement of the Flexi-Timer Agreement, retrospective payment
of money lost by workers as a result of the reduction of the hourly rate
of pay, payment for Sunday work as parties differ on the clause of the
Determination to be applied for this purpose as well as the period for
separate negotiations for working hours of Flexi-Timers and Part-Timers.
On the basis of the above, the strike continues as parties are meeting
today to further pursue a possible settlement of the dispute.
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