Publications
Partners
Johannesburg - Thousands of workers at retailer Pick 'n Pay are expected to strike over racism, a union said, in what is likely to slow pre-Christmas sales in an already subdued retail environment.
South African Commercial Catering and Allied Workers Union (Saccawu) said the majority of its 25 000 members at Africa's second-biggest grocer were expected to walk out.
Saccawu members allege that Pick 'n Pay fast tracks white 'casual' staff for promotion over experienced black employees.
"If the majority of our 25 000 members go out on strike, surely it will bring business to a standstill," Saccawu spokesperson Mike Abrahams told Reuters on Wednesday.
"This is the first step of a whole lot of campaigns to deal with the problems of racism experienced by our members within the workplace."
Pick 'n Pay dismissed the racism charges and said stores would open as usual with help from "external labour if necessary" and head office personnel.
South African retailers have experienced a tough trading environment due to the global economic downturn. The local economy emerged from its first recession in 17 years in the fourth quarter, but consumer spending has remained weak.
Statistics South Africa said retail sales fell by 6.5% year-on-year in October at constant prices, compared with a revised 4.9% decline in September.
Some analysts said the strike could slightly dilute Pick 'n Pay's optimal profitability over the holiday season.
"Their revenue stream is derived by volume. They need to be very competitive especially with the retail sales sector and general retailers really battling," a local analyst said.
"Any day and everyday counts if you have stores that are not open especially over the festive season... it might affect their profitability.
But others did not expect the retailer to lose much.
"It's not going to make a significant difference on their bottom line, but it's bad publicity. One has to look at the time frame of the strike. So i'm not too bothered about it unless it goes on for too long," another analyst said.
The retailer's shares closed 1.27% lower at R40.58.
- Reuters
