(courtesy of Daily mail) Shoprite must follow law by Online Editor FOR the 12 months to June 2012, Shoprite Group increased total turnover by 14 percent to about R82.7 billion or US$8.2 billion, which is equivalent to K43 billion. About six years ago its franchise in Zambia reportedly made the highest profit making in Africa and this enabled the firm to even open another franchise in North Africa as the Group continued expanding its footprint in Africa. Since the firm started operations in Zambia it has expanded rapidly, spreading to almost all the provinces and it now boasts of 18 outlets across the country, making it the biggest chain store in Zambia. Today Shoprite is facing one of its biggest strikes across the country. The Zambian government has set a minimum wage of K1,132.4 for shop workers. Paying anything less than this is against the laws of Zambia and we expect Shoprite to adhere to the Zambian laws fully. The Jesuit Centre for Theological Reflections, which conducts surveys on the cost of living, has its Basic Needs Basket for a family of six at K3,625 as at May 2013 indicating the barest cost of living. Unfortunately, Shoprite has continued paying its workers only K400 and in some cases K70 per week, according to National Union of Commercial and Industrial Workers (NUCIW) president Robert Musanje. It is unfair and unacceptable that Shoprite, which has been making huge profits, is paying its workers such measly salaries in blatant violation of Zambian laws when the company knows that the government has set a minimum wage for shop workers. According to Mr Musanje, “Shoprite in Zambia is making huge profits, yet it has continued to pay its workers as low as K400 and K70 per week. This is against the laws on wages.” We are urging Shoprite management to review the workers’ salaries because it is unacceptable to pay workers K70 per week or K400 per month and yet the company is very much aware of the laws of this country other than making huge profits. We shall not argue whether the strike is illegal or not but our concern is that Shoprite is not following the law and in this case both parties have abrogated the law, first by the chain store not abiding by the law and the workers for going on an alleged illegal strike. We are also worried that there is an apparent lack of corporate social responsibility on the part of the chain store by paying workers such measly salaries which will certainly consign them to poverty forever. It is only fair that Shoprite implements the recommended minimum wage for its workers and the workers call off their strike so that all parties are satisfied. There is a tendency by some investors in this country to abrogate laid down provisions of the law including ill-treating workers even when they are making super profits. Labour inspectors in the country do not seem to be doing their work in many cases and it is high time they started checking on operations of some companies to ascertain whether they are following provisions of the law. If employers abide by provisions of the law, such incidents like the current strike facing Shoprite can be avoided so that both the employer and employees operate in a mutually beneficial manner.
Posted on: Wed, 16 Oct 2013 07:45:39 +0000
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