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OK Mart workers who are embroiled in a wrangle with their parent company OK Zimbabwe over alleged unfair labour practices tried to stop the deal that saw the firm acquire Makro Wholesalers from Massmart, it has emerged. The former Makro workers said they had always been against the hypermarket’s takeover by OK Zimbabwe because from the outset they were not fully appraised about the deal and its potential benefits.
This follows claims by OK that workers were making unjustified complaints yet they were not forced to join it from Makro, which the workers say is not correct as this was the only available option.
The workers alleged that after taking over Makro, the local retail giant reneged on its agreement with Makro Zimbabwe that it would maintain favourable conditions of service for ex-Makro staff.
But the Zimbabwe Stock Exchange-listed retailer said conditions of service had not changed contrary to the workers’ claims, which it attributed to frustration with tight loss control systems.
OK acquired Makro Zimbabwe in April 2011 with the latter citing viability challenges. It emerged later that the South African firm was only against Government’s indigenisation policy.
The Indigenisation and Economic Empowerment Act compels foreign-owned firms to sell at least 51 percent stake to indigenous people as part of Government efforts to uplift previously disadvantaged locals.
The Massmart subsidiary said during its discussions with the prospective buyer it had seriously considered the dire consequences to workers of closing down the business hence the sale to OK.
In a letter to OK Zimbabwe in 2011, Makro South Africa chief executive Mr Kevin Vyvyan-Day said they took the expensive option to sell than liquidate Makro because of their commitment to workers.
“A point on which we did not waver was the continued employment of current Makro staff by the purchaser on terms at least as favourable as those currently enjoyed,” Mr Vyvyan-Day said.
But workers have alleged OK has reneged on its pledge to Makro to maintain favourable terms and conditions of employment as Makro had demanded, vindicating their reservations about the deal.
Prior to the takeover, the workers had written to the Competition and Tariff Commission expressing a number of reservations about the planned takeover of Makro by OK Zimbabwe.
The workers and managerial staff who had formed a committee to review the planned takeover claimed they were only informed about the deal some three to four months after it was structured.
In addition, the workers claimed they were never given the chance to input into the proposed acquisition of Makro by OK Zimbabwe and that the benefits to workers were never explained.
“Makro (Zimbabwe) was the flagship company in the retail sector and OK Zimbabwe taking over the majority shareholding, it (OK Zimbabwe) would then have monopoly in the retail sector.
“Our standards would be compromised since we had standards above OK Zimbabwe. With the foregoing, we would appreciate if the responsible authorities have a retook at the deal,” the workers said.
The dispute with the former Makro workers, in excess of 300, has since been referred to the retail industry’s national employment council for conciliation after internal discussions failed to yield results.
The former Makro workers have alleged that their employer has backtracked on earlier pledges the company made that conditions of service would not change for worse, but only improve.
However, OK Zimbabwe chief executive Mr Willard Zireva denied the workers’ claims saying conditions of service of former Makro workers have not been downgraded since the takeover.
Mr Zireva added that there is no way OK Zimbabwe would have made conditions of service worse than they were with Makro as the South African firm had faced viability problems for years.
But the workers alleged OK no longer pays their medical aid in full as Makro used to, they no longer get company transport, now pay more for canteen food, had their accumulated pension benefits credit cut and are still to get their money for an increment prior to the takeover.
Online Reporter