The SA Catering and Allied Workers Union (Saccawu) is threatening to embark on indefinite strike action at retail giant Massmart if management does not respond favourably to demands for above-inflation increases.
The Cosatu affiliate, which claims to have about 20,000 of Massmart’s 45,000-strong workforce, held protest marches at Makro stores around the country on Thursday, demanding that the company accede to its demand for an across-the-board increase of R900 or 12%, whichever is greater.
The marches come after wage talks deadlocked on Tuesday, when the company would not move on its 4.5% offer, which Saccawu spokesperson Sithembele Tshwete said was equivalent to R300. The lowest-paid employees took home about R5,000 a month, he said.
Saccawu demands include minimum pay of R8,000 a month, a R100 uniform allowance, a moratorium on retrenchments and an increase in working hours.
Business Day reported in August that Massmart, which is subject to a potential buyout from majority owner Walmart, posted a R903.5m headline loss for the six months to June, as consumers cut back on spending on big-ticket items such as television sets and treadmills. Total sales from continuing operations rose to R38.1bn, a rise of 1.9%, but the half-year loss hit almost R1bn after a R1.6bn annual loss in 2021 and a R1bn loss in the full 2020 financial year.
Saccawu embarked on a strike action at Makro in November 2021, demanding a R500 wage increase, rejecting management’s offer of R320. The two-week strike ended after parties settled on a R400 across the board increase.
On Thursday, Tswete said the union held protest marches at Makro stores across the country. “We are giving them [management] seven days to respond to our demands, failing which we will embark on an indefinite strike.”
Cosatu spokesperson Sizwe Pamla said the labour federation supported the Saccawu protest at Makro stores. “We condemn the intransigent attitude of the company and their attempts to undermine collective bargaining. Walmart should stop playing dirty tricks but focus on working with the union to find an amicable solution to the current impasse,” Pamla said.
He said Saccawu’s demands were reasonable and in line with the escalating cost of living. “This company like all others has benefited from tax cuts and other incentives that have been offered by government.
“The federation calls on South Africans to support the striking Makro workers by boycotting the company over the festive season. We also encourage other workers to show solidarity to these striking workers by joining their planned activities. If we do not support each other on the picket line, we will meet each other on the unemployment line.”
Massmart spokesperson Brian Leroni said: “Makro met with Saccawu at the CCMA [Commission for Conciliation, Mediation and Arbitration] on Friday and again on Tuesday to try settle the wage dispute. This after Saccawu had in the space of three days last week requested CCMA intervention, notified Makro of strike action, withdrew the strike action and again requested a meeting at the CCMA.”
Leroni said the union presented new demands at the CCMA on Tuesday and that the Makro negotiating team requested time to discuss these new demands with Makro management. “The union rejected this request and walked out of the CCMA meeting,” he said.
“The company has tried in good faith to reach agreement, but the union negotiators appear to be divided. Our impression is that the union has no ability to, or interest, in settling. This is perhaps also reflected in the high level of resignations from the union by disillusioned Saccawu members. Makro’s position is that the 2022 wage negotiations are now unfortunately closed.
“We have become very adept at implementing strike backup plans which include deploying trained temporary employees to stores as required,” said Leroni.
“As such we would typically expect negligible, if any, impact on trading. During past strike action we have found that we can run our Makro stores more efficiently with fewer people. For example, during a previous strike picking productivity for online orders in Makro stores increased by around 25%.”
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