/ 10 October 2005

Clicks wage strike enters fourth day

The wage strike at retail chain Clicks, owned by listed health and beauty group New Clicks Holdings, entered its fourth day on Monday with all Clicks stores open and operating as usual, Clicks said.

Members of the South African Commercial, Catering and Allied Workers’ Union (Saccawu) and other Clicks staff notified New Clicks of the planned strike on Wednesday following a deadlock over wage negotiations that have lasted five months.

Clicks has offered a wage increase of R225 per month, an 8,8% rise over 2004 levels, while the union is demanding a R300 or 10% wage hike.

Out of the total 5 100 Clicks staff nationwide, 3 271 are members of the bargaining unit, including 1 655 Saccawu members.

Michael Harvey, brand leader of Clicks, estimated that 70% to 80% of staff within the bargaining unit in Gauteng remained away from work through Monday, while in the coastal regions participation had dwindled from about 50% on Friday to 30% on Monday.

However, because the company has employed contract labour as replacements from Thursday, there has been little disruption to normal store operations.

Harvey did confirm there were a few sporadic labour incidents reported on Friday and over the weekend, mainly in Gauteng stores. This led to stores being closed for brief periods to resolve the issues before reopening.

He said the Commission for Conciliation, Mediation and Arbitration (CCMA) finalised strike rules with the parties on Saturday.

“Striking workers will now be allowed limited access to our stores. The onus is on union officials to ensure that workers conduct themselves properly and are confined to the demarcated areas in the stores,” he noted.

“Our priority is to minimise inconvenience and disruption to our customers and our contingency plans appear to be operating effectively. We would like to thank our customers for their continued support over the first few days of the strike and ask for their understanding during this unsettling time.”

He noted that the wage offer from the retailer is well above the current inflation rate of 4,9%. All permanent employees of Clicks also participate in a performance-bonus scheme that is based on the results of their particular store. Striking workers will not be paid for the period they are not at work, he added.

The Clicks strike does not impact on the other brands in the New Clicks stable, such as Discom, Musica and The Body Shop. It also does not affect Clicks’ professional pharmacy staff.

New Clicks shares were 1,3% or 10 cents higher in mid-afternoon trade on Monday, last quoted on the JSE at R8,05 from R7,95 at Friday’s close, with 517 677 shares having changed hands. — I-Net Bridge