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Wage strike hits Woolworths distribution centre

Cape Town – Over 600 National Union of Food Beverages Wine Spirits And Allied Workers (Nufbwsaw) members continued a week-long strike at a Woolworths [JSE:WHL] distribution centre in Midrand on Monday.

The union's general secretary Nqobile Tshabangau told Fin24 that workers are looking for a "decent salary".

Tshabangau said Woolworths was paying R3 000 - R3 600 as a minimum salary... compared to other players in the market. He claimed that entry level staff working for other retailers earned up to R10 000.

“This is not a salary one can survive on,” he said.

Tshabangau said that Nufbwsaw members are demanding that Woolworths match what competitors are paying.

"Their products are so damn expensive, yet they are paying their workers so little,” he said.

The union embarked on a protected strike last Monday and is demanding a R7 000 minimum wage.

Woolworths confirmed on Monday that 600 union members were on strike at the Johannesburg distribution centre.

It told Fin24 in an emailed response that the union is demanding a 110% increase in wages and additional allowances and an overall increase (including benefits) of 130%.

“Our Montague Gardens and Maxmead Distribution Centres have reached an agreement on salary increases through on-site committees - this agreement allows for a 10% increase,” Woolworths said.

In response to Tshabangau's comparison of competitor salaries Woolworths said "the salaries we offer our employees in the Midrand Distribution Centre are based on processes involved with the Warehouse Management System".

"These roles are very focused and process driven. Other market players require the completion of an end-to-end distribution function which involves multiple roles or a multi-skilled role.

"A comparison cannot be drawn between the different roles as they require different levels of work, either based on manual labour intensive processes or the use of technology," Woolworths said.

Woolworths said business continuity plans are in place for continued operations and its customers should not experience any disruption in the supply of goods to stores.

(Pic: Lobby group BDS SA)


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