Woolworths now plan to retrench large numbers of workers

Hardly a week after vehement denials by Woolworths' spokespersons to the media that they do not intend retrenching workers, we are now informed of the planned retrenchments of about 177 workers. This follows shortly after it was brought to the attention of the Union, by members, that the Company was busy attempting to, in an underhand manner, convert the remaining full-time staff to flexi-time contracts.

Since the Union indicated its intention to challenge these attempts by the Company, Woolworths have shown their hand. The real reasons for the so-called conversion of employment contracts was nothing but a manoeuvre to get rid of workers, to drive costs down and profits up, at the expense of workers and the many dependent on an already low wages. Over and above this it is a clear Union-bashing tactic in that once the company concludes the exercise, they will have no full-time workers and thus be able to manipulate workers against the Union through in a sustained manner, through a regime of fear.

Since it became clear to the Company that they will not easily get away with imposing these employment contracts on workers, behind the back of SACCAWU, they revealed their real plan, which is nothing short of increased exploitation of the workers, failing which they would rather retrench workers, with no regard for the impact on their lives and those dependent on this meagre income.

This approach is tantamount to coercing workers, holding a gun against their heads which is unacceptable to SACCAWU. Interestingly, this so-called conversion, seem to be targeting the lower ranks of workers, whose remuneration is something next to nothing whilst those on the upper echelons remain intact to enjoy the fruit of the workers' toil. We will oppose this and challenge the Company by all means at our disposal.

The process by which the Company intends pursuing this process, without informing or even consulting SACCAWU; and the consequences thereof on the affected workers, should this intended conversion go ahead without it being challenged, will be:

• management meeting with workers individually, thus able to coerce them to accept one of the three options, being;
• conversion of full-time employment contract to forty hour flexi-time, (with substantial downgrading of benefits and income as well as increased vulnerability and uncertainty over hours of work and shifts)
• early retirement and
• voluntary retrenchment
• this process may be concluded by the 1st October 2012 where all workers should have signed acceptance one of the three options, liking it or not.

The claim by the Woolworths that this is a voluntary process, is of course not true. Workers will have to accept one of the three options and the meetings being conducted one-on-one between workers and management without Union representation clearly are designed to intimidate workers. Obviously the power relations are skewed in favour of managers and there is no way workers can stand their ground in the fact of a junta reminiscent of a kangaroo court.

Workers are expected to accept these options when some of the clauses in the flexi-time contract include;

• adjustment to workers salaries, with some reduction of wages amounting to as much as 60%,
• a possible (24 hours) notice changes in their schedule of work,
• no transport will be provided for late shifts,
• workers should be available to work any day of the week as scheduled by management including Sunday and Public Holidays,
• Sunday (and Public Holidays) will be regarded as an ordinary work day,
• workers will lose their existing membership to the healthcare fund,
• workers will also be expected to accept working longer hours than their shifts to tend to customers without overtime payment (this is a typical Walmart wage-theft strategy),
• the Company have the right to shift workers between different stores.

SACCAWU has over the years opposed such flexi contracts and believe this is completely hostile to workers' lives outside the workplace (religious, cultural, leisure, etc.), has no regard for the safety of workers, while at the same time driving down workers' pay.

We note that in their rush to retrench workers, the company has rushed to the CCMA to request a mediated process (section 189A) without even serving a section 189 notice on the Union. We will continue to oppose this as well as the attempts to retrench workers as this is not informed by any financial realities but greed and hostility towards workers and their unionisation.

The reasons for this rushed and uncalled for attacks on workers becomes both clear and confusing. Clear, because as reported recently in the Financial Mail, according to Woolworths CEO Ian Moir, the strategy to grow is centred around 'driving down costs and profitability up'. And an important consideration in their driving down costs is to reduce the workforce, to worsen their contracts, to erode their benefits and to cut wages. However what is baffling is, they also plan massive expansion, including ten (10) new large supermarkets in over the next two years, with one large supermarket having already been opened in April this year.

Clearly, if they plan such expansion, of new stores, what will be the basis for retrenchments, if not for purely vindictive reasons in the light of the opposition by full-time staff to conversion to flexi-time. With this retrenchment plans the Company demonstrates the lengths at which they are prepared to go in attacking workers to force them to accept worse employment contracts and wages. This will not be accepted and SACCAWU will fight back to defend workers!

Statement issued by Thabo Mahlangu and Mike Abrahams, SACCAWU, September 6 2012

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