/ 18 October 2005

Clicks strike: Parties enter mediation

The wage strike at retail chain Clicks, owned by listed health and beauty group New Clicks Holdings, continued on Tuesday with Clicks management and members of the South African Commercial, Catering and Allied Workers’ Union (Saccawu) finally going into mediation as the stayaway entered its 12th day.

The action, which started on Friday October 7, followed five months of wage negotiations between the retailer and Saccawu, as well as intervention by the Commission for Conciliation, Mediation and Arbitration (CCMA). 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.

Because the company has employed contract labour as replacements for its striking workers, the action so far has caused little disruption to normal store operations, New Clicks has reported. The group has not yet provided any estimate of potential financial losses resulting from the strike, saying it will provide financial figures once the strike has ended.

Michael Harvey, brand leader of Clicks, said on Tuesday the company welcomes the mediation as a means of resolving the dispute.

“The reality is that there are no winners in a strike. The company’s business is negatively affected, while the striking workers lose income for the period they are away from work. At the end of the day, both parties lose money,” he said.

Harvey said all 290 Clicks stores across the country were trading normally on Tuesday.

“During this industrial action, our priority has been to minimise inconvenience and disruption to customers, and our contingency plans have been operating effectively. Our loyal customers have continued to support us through this time and we thank them for their understanding and patience,” he noted.

In terms of the strike rules agreed by the CCMA, he added, striking workers are allowed limited access to Clicks stores. The onus is on the union officials to ensure that workers conduct themselves in an orderly manner and are confined to the demarcated areas in the stores.

However, several incidents were reported last week of strikers making excessive noise in stores with “musical” instruments and affecting both customers and Clicks staff. Following an application by Clicks to the Labour Court, Saccawu had given an undertaking to “refrain from causing a noise disturbance by blowing on whistles or vuvuzelas while picketing on or within” the Clicks premises.

Clicks will only disclose the financial impact of the strike once the dispute has been settled and staff have returned to work, Harvey confirmed.

The strike only involves staff of Clicks and does not affect the other brands in the New Clicks stable, such as Discom, Musica and The Body Shop. It also does not include the professional pharmacy staff of Clicks.

New Clicks shares were unchanged in morning trade on Monday, last quoted on the JSE at R8,20. — I-Net Bridge