Strike targets giant retailer in South Africa

The South African Commercial, Catering and Allied Workers Union went on strike Aug. 10 against Shoprite Holdings. Shoprite is the largest food retail company in South Africa with 286 grocery stores. In total, it has 574 corporate stores in 17 different countries.

The strike in South Africa, now entering its third week, is a major action for the union. Roughly one-third of its 107,000

members are participating. Shoprite Checkers has 52,000 employees total. Around 35,000 employees are union members. The vast majority of these members are out on the streets with thousands more aligned non-members joining the strike.

The workers are demanding an increase in wages and improved working conditions. The union has also criticized Shoprite for a practice too common in many other parts of the world—hiring part-time workers to keep wages and benefits down. Previously, the union had pressured Shoprite by beginning lunchtime pickets on July 18 before escalating its actions.

The strike has affected most of Shoprite Holdings’ retail outlets, including Shoprite, Checkers, OK Furniture, OK Foods, OK Mini Markets, House & Home, Hungry Lion, USave, Freshmark, 8 ‘til late, Computicket, Rainbow Finance, Meat Market, and Sentra.

On Aug. 11, at a large gathering of 2,000 people, the Congress of South African Trade Unions came out strongly in support of the Shoprite workers. COSATU called for its members to boycott the Shoprite chain. Sdumo Dlamini, regional chairperson for COSATU, lambasted Shoprite for paying its CEO, Whitey Basson, $57 million Rand ($7.9 million U.S.) each year while many of its workers get less than 1,000 Rand ($139 U.S.) per month.

At a recent financial meeting, Basson stated that Shoprite’s gross profits for 2006 were 21.3 percent higher than one year ago. The union is demanding wage increases for all workers of 300 Rand ($41 U.S.) or 10 percent, whichever is greater. Shoprite has refused the demanded increase.

Shoprite smears workers as strike has impact

Shoprite is known as a particularly bad employer in South Africa. Labor disputes with the union have erupted in recent years over compulsory HIV testing and forcing employees to buy uniforms and name badges from the company.

The nature of the labor conflict has become increasingly militant and uncompromising with workers trying to hold

Retail giant Shoprite is refusing to give workers a small wage increase.

pickets inside the store. SACCAWU’s negotiator, Thoko Mchunu, noted that “the fact that Shoprite is closing some stores is proof that the strike is having an impact.” The union has stated it is willing to negotiate, but the company has so far negotiated in bad faith.

In an effort to undermine the strike, the company also has accused the union of several violent acts such as looting and burning stores. South African capitalist media outlets have jumped on these incidents and have tried to depict the workers as unruly gangsters.

But this is hardly the truth. Workers are justifiably angry with Shoprite and its anti-union tactics. In one incident in Philippi, more than 100 workers demanded that management close the stores after scabs were hired to replace the striking workers. The workers called on non-union members to join their struggle and shouted slogans like “an injury to one is an injury to all.”

The police, private security services, and company management are also collaborating to sabotage the strike. Moses Makhanya, the spokesperson for the union in KwaZulu-Natal, confirmed that these forces are “intimidating and threatening our members, more especially in the suburbs where it’s white dominated areas.”

The strike at Shoprite shows no sign of letting up. It is taking place against a background of increased militancy by other workers in South Africa. Bakers throughout the country have been on strike since Aug. 17, while the South African Transport and Allied Workers’ Union along with COSATU allies are gearing up for actions beginning next month to support striking cleaning workers.