SHOPRITE group CEO Whitey Basson wants Zambia’s president to clarify his country’s position on foreign investors after Shoprite was forced to back off from firing 3,000 striking workers. Zambian labour minister Fackson Shamenda said on Thursday the South African grocer had been told its trading licence would be revoked if it carried out the dismissals. Mr Shamenda’s intervention was welcomed by the Zambia Congress of Trade Unions, with its general secretary Roy Mwaba telling the Lusaka Times Shoprite was only interested in profits and not worker welfare. They can go back if they want. They can pack their cabbages and leave our country, he said. Mr Shamenda said Shoprite had been given 10 days to negotiate and resolve the problem. The union representing the workers said on Thursday they had returned to work. The move by the Zambian government contradicted labour analysts who said on Wednesday that Zambia and the rest of Africa were more attractive investment destinations than South Africa given the flexibility of labour laws and faster growth in other countries on the continent. Zambia ranks 20th out of 148 countries for its hiring and firing practices, according to the World Economic Forum’s latest Global Competitiveness Report. By contrast, South Africa ranks a lowly 147th. The 3,000 workers, who were striking for higher wages, were dismissed on Tuesday when they ignored Shoprite’s second ultimatum to return to work. Shoprite spokeswoman Sarita van Wyk said on Thursday that pressure from the Zambian government had forced Shoprite’s management back to the negotiation table in an effort to find a solution for the wage dispute with the union. Ms van Wyk said Shoprite believed the Zambian government believed that the minimum wage for the shopworker sector that it announced earlier this year is not applicable to Shoprite as a foreign investor, and that Shoprite should be paying much higher wages in line with those of civil servants. Ms van Wyk said Shoprite had implemented the minimum wage in July in order to comply with the government’s new minimum wage levels, although many workers earn more than that. Shoprite management was due to resume talks next week and hopes to reach an agreement with the union with the assistance of government. Mr Basson intended meeting President Michael Sata to clarify Zambia’s stance on foreign investors since the group prides itself on its track record of being the pioneers of modern retailing in Zambia. JSE-listed Shoprite has a secondary listing in Zambia and has 30 stores in the country, including 19 Shoprite stores and nine Hungry Lion outlets, according to the group’s latest annual report. The group said in the year ended June, Shoprite was particularly successful in Zambia despite increased competition from other South African retailers. CEO of Vestact Paul Theron said Zambia appeared to be one of the African countries that (Shoprite) have worked hardest at — Lusaka has been like a hub for them. Shoprite had also had regulatory issues with its Zambian listing, and overcoming various regulatory hurdles over time is just what you have got to do. Business Day!
Posted on: Sat, 19 Oct 2013 04:07:37 +0000
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