/ 26 July 2005

Pick ‘n Pay counts cost of four-day strike

South African retailer Pick ‘n Pay has experienced a total turnover loss of just less than R50-million over the four days since Friday, when approximately 20 000 staff, members of the South African Commercial, Catering and Allied Workers’ Union (Saccawu), began their strike over higher wages, according to CEO Sean Summers.

Providing an update on the strike action on Tuesday, Summers said most of the turnover loss was experienced on Friday and Saturday, the first two days of the strike.

For the most part, Pick ‘n Pay stores were trading normally nationwide on Tuesday, as Saccawu organised marches in the major cities across South Africa.

A meeting between Pick ‘n Pay management and Saccawu representatives has been agreed and will take place at 9am on Wednesday, under the auspices of the Commission for Conciliation, Arbitration and Mediation (CCMA), to try to find a resolution to the dispute.

“Yesterday [Monday], we found considerably more restraint exercised at stores on the part of our employees. We are grateful that they have behaved in a more respectful manner,” Summers said.

Picketing rules have been agreed with the union through the CCMA, and Pick ‘n Pay believes that any picketing action will now be conducted peacefully and within the law.

“We have requested of the union that the few remaining instances of bad behaviour be dealt with by the union leadership,” Summers added.

Safety arrangements have been made for Tuesday’s marches by the union.

“We believe that our offer of 7,9% or R310 per month, backdated to March 2005, together with all the benefits Pick ‘n Pay employees enjoy, is more than fair,” noted the CEO. “The company and our employees have suffered significant financial losses and we are hopeful that this dispute will be resolved as soon as possible.

“We need to make sure that the regrettable actions of particularly the first two days are not repeated.”

Saccawu is demanding a 12% increase in wages, or R400 per month.

Pick ‘n Pay shares were 0,75% or 20 cents lower in Tuesday-morning trade, last quoted on the JSE Securities Exchange at R26,30 from R26,50 at Monday’s close, with 397 501 shares having changed hands.

The share price has been basically unaffected by the strike to date, still trading between the R26,30 to R26,50 levels seen last week. — I-Net Bridge