The 11-day strike by about 20 000 workers at Pick ‘n Pay ended late on Monday, with the food retailer estimating total turnover losses at R73-million, according to CEO Sean Summers.
Announcing the wage agreement with members of the South African Commercial, Catering and Allied Workers’ Union (Saccawu) late on Monday, Summers said the settlement would result in an overall increase in the company’s labour bill of about 7,2%.
The parties agreed on an across-the-board increase of R325 per month, back dated from March 1, 2005, with a special arrangement for an 8% increase to apply to a small number of employees earning higher than R4 100 per month.
Pick ‘n Pay Retail managing director Nick Badminton said: “As part of the settlement, the parties have committed to urgently embark on a process that will lead to increased productivity as well as the adaptation of trading hours and working shifts. A commitment has also been made to dealing with the relationship post the strike.”
Added Summers: “We’d like to apologise to our customers for any inconvenience they may have experienced and thank them for their support and patience throughout.
“Both parties are pleased to have resolved the dispute and look forward to improving the relationship looking forward.”
At the start of the strike, which began on July 22, Saccawu was demanding a 12% increase in wages, or R400 per month, while Pick ‘n Pay was offering 7,9% or R310 per month, backdated to March 2005.
Pick ‘n Pay shares opened 0,04% or one cent lower on Tuesday, last quoted at R26,99 on the JSE. The strike had little impact on the company’s share price, which reached an all-time high of R27,70 during the action, on July 28. – I-Net Bridge