Makro’s long wage strike ends as union, employer conclude deal

Labour union, the South African Commercial Catering and Allied Workers Union (Saccawu) and Makro, a subsidiary of Massmart have finally signed a wage deal. Picture: Karen Sandison/African News Agency (ANA)

Labour union, the South African Commercial Catering and Allied Workers Union (Saccawu) and Makro, a subsidiary of Massmart have finally signed a wage deal. Picture: Karen Sandison/African News Agency (ANA)

Published Jun 9, 2023

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Labour union South African Commercial Catering and Allied Workers Union (Saccawu) and Makro, a subsidiary of Massmart have finally signed a wage deal, ending a more than a year-long strike after negotiations stalled.

The strike took 14 months to conclude.

The parties have agreed on a multiyear agreement, which would cover the 2022/2023; 2023/2024; and 2024/2025 financial years.

The agreement was facilitated through a CCMA Section 150 intervention, the union said in a statement yesterday.

For the financial year 2022/2023 the parties had agreed on a 4.5% incease or R450, whichever is greater. For 2023/2024 the parties agreed on an increase of 5% or R480, whichever is greater, and in 2024/2025 a 5% increase or R500, whichever is greater. The agreed wage increase would be backdated from April 1, 2022.

The parties also agreed to conduct a relationship-building exercise by no later than July 31.

“The relationship-building exercise will among others explore and consider centralised bargaining for the different brands or subsidiaries of Massmart such as Builders Warehouse, Game, Masscash and Makro,” Saccawu said.

Also in the settlement it was agreed that engagement would be expedited on the plight of nearly 600 workers dismissed, and those charged to reach an amicable solution.

US retailer Walmart last year took full control of Massmart following a $371 million (R7 billion) stake acquisition deal. At the time of the deal the performance of Massmart, with its Makro unit was poor. Prior to the Walmart deal Massmart shed jobs.

BUSINESS REPORT