Retailer Pick ‘n Pay has been granted interdicts at some of its stores across the country where striking workers have prevented shoppers from entering or attempted to shut down operations, the company said on Friday.
About 20 000 workers at 150 Pick ‘n Pay stores, members of the South African Commercial, Catering and Allied Workers’ Union, are striking for higher wages, disrupting business at some locations.
”Some interdicts have been issued,” a company spokesperson said. ”A protected strike means that while the unions have the right to withhold labour, the company also has the right to continue operating. Where union action has prevented this, interdicts have been issued.”
Saccawu general secretary Bones Skulu said almost all Pick ‘n Pay workers are on strike throughout the country. However, union representatives and Pick ‘n Pay management were meeting at the Commission for Conciliation, Mediation and Arbitration in an effort to find a possible settlement to the wage dispute.
Skulu added that the strike will last indefinitely, depending on the wage negotiations with the company’s management.
”If Pick ‘n Pay does not make an offer that is near what we are demanding, then the strike will continue over the weekend,” he said.
Pick ‘n Pay is offering its employees a 7,9% increase or R310 per month, whichever is the greater. Saccawu is demanding a 12% increase or R400 per month.
Retail analysts estimate the company could lose up to R50-million a day across all of the stores, depending on how short-staffed the stores are. Temporary workers could be contracted to fill the gaps, however, therefore limiting revenue losses.
Executive pay ‘unrelated’ to wage talks
Executive pay is unrelated to negotiations over wages with Pick ‘n Pay workers, the retailer said on Friday.
”Executive remuneration is in no way relevant to wage negotiations. To illustrate … it should be pointed out that last year, executive remuneration decreased by 5% while union members got a normal increase,” the company’s deputy chairperson, David Robins, said in a statement.
”This year, the increase in the CEO’s base salary was 6,9%,” he added.
Saccawu’s demand for a wage increase is based partly on the company’s improved performance, and on the pay of its chief executive, Sean Summers.
”If workers have contributed to the profits of the company, they must be rewarded accordingly,” Saccawu spokesperson Dumisani Dakile said earlier.
The company’s trading profit increased by 24,1% from R789-million to R933,6-million between 2004 and 2005.
It awarded an increase of 19% to Summers, whose annual remuneration package amounts to R12-million, Dakile said.
The retailer has also declared a dividend of 20,8% to its shareholders based on its performance during the past financial year.
Robins said executive pay is largely guided by performance.
”Packages are structured differently and in the case of executives, heavily incentivised on performance [80% of earnings are incentive].”
Summers said the company respects its workers’ right to strike.
”We respect the right of workers to withdraw their labour and sincerely hope that the union in turn respects our right to continue operating.”
He is disappointed at the union’s decision to strike, given the company’s contribution to job creation.
”Apart from the offer to employees, we are also a net job creator. Last year alone, we created 4 000 new, sustainable jobs, with more to come this year.”
The company’s offer to its employees is ”good and fair” and among the best in the country.
”We will do everything to ensure the minimum disruption and will work extremely hard to resolve the problem,” he said. — Sapa, I-Net Bridge