No end in sight to Shoprite strike

There is no end in sight to the strike at Shoprite’s distribution centre in Centurion, with workers vowing to continue until management meets their demands.

Shoprite is the biggest grocer in Africa by the number of stores.

Staff downed tools on Monday over issues of outsourcing and pay.

The Centurion facility is the largest distribution centre under one roof on the continent. It serves as the distribution point for about 90% of products delivered to stores in the Gauteng area and beyond.

Inspector Malepe, the worker who is leading the group, said on Friday that the strike would continue indefinitely.

"We work in shifts here. Until yesterday, shift 1 and shift 2 were on strike. Today, shift three and shift four are supposed to takeover from us but they have decided to join us in striking. This weekend, no work will be done here," said Mr Malepe.

According to the General Industries Workers Union (Giwusa), which is involved in the strike, about 90% of the 1,000 workers at the facility are employed by labour brokers who pay "poverty wages".

The union said outsourced Shoprite workers were being paid R23/hour in a 44-hour week. Workers were requesting a minimum monthly salary of R10,000.

Avior Capital Markets equity analyst Kyle Rollinson said : "The Centurion distribution centre is probably the biggest in the country. If the strike goes on longer ... it will definitely have an impact. They will be unable to service their stores, which would mean fewer sales. It’s a time issue in the end."

Shoprite has remained mum on the issue despite being approached for comment.

In early morning trade, the company’s share price was down 0.98% to R165.76. In the week to April 8, the company has been the worst performer in the food and drug retailers index, falling 3.62%.