Thousands of workers at South Africa’s second-biggest food retailer, Pick n Pay, will go on strike for higher wages from Friday, union officials said on Monday.
Pick n Pay already struggles with high expenses, analysts say. Trading expenses equalled about 15% of its half-year revenue.
About 27 000 workers, led by the South African Commercial, Catering and Allied Workers’ Union (Saccawu), are demanding a 12% wage increase and a 10% staff discount on basic foodstuffs.
The wage dispute, which has been going on since December last year, led to a four-day strike last month.
Pick n Pay spokesperson Neil Quirk said the company has not received notification of the strike from the union.
Pick n Pay reported lower half-year profit last week and said it expected business to remain tough.
South Africa, the continent’s biggest economy, has been hit by a wave of strikes and strike threats, which have led to pay settlements well above the current inflation rate of around 3,5%. — Reuters