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Secondary strike fails to rock Makro owner as employees show 'zero interest'

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  • A secondary strike by the SA Commercial, Catering, and Allied Workers Union at Massmart's operations had no impact on operations, the group said.
  • The union had planned a sympathy strike by 15 000 workers at six Massmart companies over a wage dispute at Makro.
  • But Massmart said that only 193 workers at other group companies joined the strike.  
  • For more financial news, go to the News24 Business front page.

The Massmart Group has said a secondary strike by the SA Commercial, Catering, and Allied Workers Union (Saccawu) at its other subsidiaries over a wage dispute at Makro had no impact on its operations, as too few employees were interested in the industrial action.

Saccawu last month announced plans to go on strike at Makro following an impasse over increasing wages. The union is demanding a 12% wage increase and a 20% increase in sales commissions paid to employees. 

In an effort to ramp up pressure on Massmart, Saccawu last week announced a secondary strike by its members at six other Massmart Group companies, although these groups had already concluded their own wage negotiations. After arbitration aimed at breaking the deadlock failed, Saccawu kicked off the industrial action on Thursday.

While the union planned to have 15 000 workers stop work at Game, Builders Warehouse, Rhino, Fruitspot, Shield, and Jumbo stores, Massmart said there was "almost zero interest in the secondary strike". 

Massmart vice president of corporate affairs, Brian Leroni, said only 193 employees from across the group joined the Makro strike.

READ | Game, Builders to be hit by strikes, as talks at Makro fail

Leroni said that, with the exception of Makro employees, wage talks had been settled with Saccawu at the group's other subsidiaries at an average 4.5% increase. This was the average wage increase processed for every employee in the Massmart group, apart from Makro staff.

Leroni said there was no notable impact on trading activity in Makro or other group stores as a result of the strike.

"Interestingly there was a significant increase in online orders for pick-up at our Makro stores. The company has tried in good faith to reach an agreement with Saccawu at Makro. But their union negotiators appear to be divided on a way forward," Leroni said.

Leroni said Saccawu did not have a plan that could lead to a settlement, other than making "unrealistic demands" and following up with strike action. He said this was not conducive to reaching a wage agreement.

"Because of this we see no reasonable opportunity to reach an agreement with Saccawu in the current negotiation cycle," he said.  

He said Massmart's final position was that the 2022 wage negotiation process was over and would re-open in March of next year. 

READ | Union plans to intensify Makro strike targeting Massmart group companies

Saccawu spokesperson Sithembele Tshwete said 80% of the union's members at Makro and 60% of its members at other Massmart Group companies were on strike. The strike did not have 100% attendance from members as some were already on leave, he said.

"Their [Massmart's] response is the memos sent by the employer for the workers to resign from the union so that they get a 4.5 % increase outside the collective bargaining process. We view this as the violation of freedom of association and undermining of collective bargaining," said Tshwete.

While Leroni told News24 that Saccawu members working for the Massmart companies indicated their intention to leave the union, Tshwete claimed that the union was being targeted by the group.

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