Shoprite Agreement May 2023 PDF

# AGREEMENT ENTERED INTO BY AND BETWEEN **SHOPRITE CHECKERS SUPERMARKETS/SHOPRITE SUPERMARKETS/MEAT MARKETS/FURNITURE DIVISION/FRESHMARK/DISTRIBUTION CENTRES FOODWORLD/RAINBOW FINANCE** (hereinafter referred to as **the Company**) **AND** **SOUTH AFRICAN COMMERCIAL CATERING AND ALLIED WORKERS UNI...

# AGREEMENT ENTERED INTO BY AND BETWEEN **SHOPRITE CHECKERS SUPERMARKETS/SHOPRITE SUPERMARKETS/MEAT MARKETS/FURNITURE DIVISION/FRESHMARK/DISTRIBUTION CENTRES FOODWORLD/RAINBOW FINANCE** (hereinafter referred to as **the Company**) **AND** **SOUTH AFRICAN COMMERCIAL CATERING AND ALLIED WORKERS UNION** (hereinafter referred to as **the Union**) ## Across the board wage increase 2023 It is agreed that an across-the-board wage increase of 8.0% will apply effective 01 May 2023 on the actual wage rates of employees in the bargaining unit who were in the employ of the Company on 30 April 2023 and who are still in the employ of the Company on the date of signing this Agreement and these wage increases will be backdated to 01 May 2023. ## Across the board wage increase 2024 It is agreed that an across-the-board wage increase of 8.0% will apply effective 01 May 2024 on the actual wage rates of employees in the bargaining unit who are in the employ of the Company on 30 April 2024 and these wage increases will be effective from 01 May 2024. ## Across the board wage increase 2025 It is agreed that an across-the-board wage increase of 8.0% will apply effective 01 May 2025 on the actual wage rates of employees in the bargaining unit who are in the employ of the Company on 30 April 2025 and these wage increases will be effective from 01 May 2025. ## The scheduling of Permanent Part Time Employees (PPT) The scheduling of Permanent Part Time Employees (PPT) is guided by economic factors, customer demand and or business trading patterns. In consistent compliance with the relevant pieces of Legislation; the implementation of this Agreement will not have negative impact on the current scheduling of hours, nor give rise to unilateral downward variation of the working conditions, including but not limited to the scheduling of hours; save for where there exists compelling and substantive-business rationale, which shall be clearly communicated to Shop Stewards and/or employees by relevant management teams. ## Funeral Assistance The Company funeral assistance to employees will be increased to R3000 while funeral transport assistance contributed by the Company in the event of the death of an employee will be increased to R2150. This transport assistance money is to be used for transport purposes of those employees in the store of the deceased employee who has been granted permission to attend the funeral. Conditions attached to transport assistance remain unchanged. ## Medical Health Insurance The Parties agree to the replacement of OCSA Care and PSG Family Crisis Hospital Plan with Affinity Health subject to the Company conducting a due diligence and discussing and agreeing with Affinity Health on implementation procedures aligned to the 2005/2008 and 2010 agreements between the Parties. The company agrees to honour its obligations in so far as it relates to: 1. The company subsidy 2. The company granting access to representatives of Affinity Health to market the product to bargaining unit employees, such access will not disrupt operations and will be subject to prior appointment and approval by the Divisional People Partner 3. The company making the deductions and paying over the monthly premiums to Affinity Health. The process will commence post signing of this agreement. All other terms and conditions pertaining to Medical Health Insurance are to be agreed upon by the parties. ## Rules for Long Service Leave The current policy in place is that employees in the bargaining unit who have completed 6 years of unbroken service with the Company are entitled to long service leave. Long service leave entitlement will be as follows: * 45-hour full time contract = 6 days long service leave * 40-hour full time contract = 5 days long service leave * Permanent part time contract = 24 hours (3 days) long service leave. Long service leave will be in addition to normal annual leave entitlement. The long service leave cycle for all employees will run concurrently to the employee's annual leave cycle i.e., any annual and long service leave not taken within the 6 months after the annual leave cycle will be forfeited. Long service leave for qualifying employees will be effective from the leave cycle immediately succeeding the leave cycle wherein 6 years of completed unbroken service is achieved. It is agreed that staff can not take leave during the December/year-end festive season. Employees for whom December falls within the six-month period will be awarded an additional 2 months grace to take their leave. Given that this has been agreed to in 2021; the Permanent Part Time Contract = 24 hours (3 days) Long service leave rules will be implemented with effect from the calendar month following the signing of this Agreement. Issues relevant to forfeiture or retrospective leave will be dealt with as per clause 8 of this agreement. ## Conversion of Permanent Part Time (PPT) Employees to Permanent Full Time (PFT) Status The Parties acknowledge that the 2018 dispute was resolved as a result of both parties seriously compromising their original position on the matter of conversion of PPTs to PFTs. The 2018 Collective Agreement concluded between the Parties addressed the conversion of PPT Controllers to full time status once certain criteria have been met. Since the 2018 agreement was concluded and up to 2020 a total of 2136 PPT Controllers have been converted to PFT Controllers. Notwithstanding the above conversion relating to PPT Controllers, the Parties also acknowledge that during the 2020 financial year, the Company has converted 2538 ordinary PPTs across all operational departments and job categories without limit to years of service in the filling of PFTs vacancies. The statistics of PPT conversions (excluding Controllers) for the years 2018, 2019 and 2020 were 2670, 2042 and 2538 respectively. The annual labour turnover during 2020, for whatever reason, was 28% for both employment categories within the bargaining unit and 11.66% for PFTs. It is furthermore noted by the Parties that the ratio for the PFT vs PPT will at all material times differ between divisions, regions and even stores based on a number of factors such as the store size, geographical region, brand, job role etc. It is in the context of the above that Parties anticipate projections for the conversion of PPT within the Company to PFT status during the next 4 years (2023 to 2026) to total approximately 9500 or more with preference being given to internal PPTs with 5 years and more unbroken service. Progress will be jointly monitored and discussed at the divisional quarterly meetings as well as annually at national level. In full appreciation and compliance with the 2018 Settlement Agreement content and spirit thereof, the parties will conduct joint periodical consultations and reviewal of progress related to conversion of the PPT employees to PFT status. The process will include transferring and sharing of information including, where possible, reasons that might be giving rise or attributing to absenteeism, absconsion and or labour/staff turnover. ## Other items for further deliberation and conclusion The Parties agree to continue their meaningful engagement with the aim of reaching an agreement by mid-August 2023 on the following items: * SACCAWU NATIONAL PROVIDENT FUND (SNPF) related issues * Stock take allowance * Regulation Of Time Off for Shop Stewards * Introduction Of a Full Time Shop Steward * Policy Review Issues * Scheduling hours for Part Time employees * Review of Long Service leave data The Company undertakes to furnish the Union with analysed data and related information with regards to issues concerning Stock Taking and Scheduling of hours of Part Time employees in advance of the first meeting pertaining to engaging these issues, viz; Stock take allowance and Scheduling hours for Part Time employees. The company agrees to fund travel and accommodation costs for up to a maximum of two meetings prior to mid-August 2023, to enable engagement on the items mentioned in clause 8 of this agreement. ## General All other conditions of employment and benefits not expressly varied by the terms of this Agreement remain in force and are binding on both Parties for the duration of this Agreement. The reference to 01 May above in respect of Permanent Part-Time employees refers to the first day of the first pay cycle in May of the applicable year, unless stated otherwise. Save for clauses 4 and 7 of this agreement, all other terms of this Agreement and conditions of employment covered herein will not be renegotiated during the term of this agreement. ## SIGNED AND AGREED AT CAPE TOWN ON THIS 30 DAY OF June 2023.