Customers of Shoprite at The Palms Shopping Mall, Lekki, were shocked Friday, 30th July when its doors were shut for business. workers there had embarked on a strike action, thereby halting business activity till a few days ago.
Customers of Shoprite at The Palms Shopping Mall, Lekki, were shocked Friday, 30th July when its doors were shut for business. workers there had embarked on a strike action, thereby halting business activity till a few days ago.
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Its new Surulere branch suffered similar fate. The workers complained of ‘sweat shop’ working conditions of service despite record sales. A similar scene had played out in 2009 where the workers’ grouse were practically the same. The staff alleged they work long hours, are paid meager salaries, receive no bonuses, no medical allowance and no annual increments. Acting swiftly, Shoprite sacked the ‘rebel’ workers replacing them instantaneously though with hitches in its operations. By the time it opened for business last Tuesday it was estimated to have lost about N80 million, a sum which the ex-workers say many times over, outstrips their demands. The aggrieved ex worker’s are requesting that the labour union intervene in the matter wondering why an organization should apply zero tolerance by summarily sacking its employees for demanding better working conditions.
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“With all the money we are making for them, they are paying us N13, 000 as basic salary and we receive no bonus’’
Business activity at super market chain, Shoprite, a favorite for residents in Victoria Island, Lekki and Ajah regions of the Island was last week grounded by protesting staff. The South African chain which recently opened its second branch in Surulere on the mainland was under lock and key for 4 days (Friday till Monday) after angry staff locked up the highly profitable supermarket vowing to ground business activities till their demands were met. The well orchestrated plot by the staff was neatly executed penultimate Friday when its management thought it would be a normal business day. They all turned up for work like, but rather than resume at their duty post, the staff did a decoy, locking the doors to the store and pasted demand posters on the supermarket doors and wall. However, a couple of loyal staff discreetly informed the management of the crisis at hand warning them not to ‘‘show face’’, in case the aggrieved workers take out their frustrations on them. The management swung into action alerting security agencies to beef up security in and around the premises. The workers on their part took positions at the entrance of the store and other strategic locations, displaying placards with their demands. Some were seen actively warding off customers, telling them they were shut for business.
One of them told customers, ‘‘please go home. We are shut till further notice.’’ Another said, ‘‘please talk to our management to consider us. We are suffering too much.’’ One of the striking workers told Island that Shoprite workers are being cheated and the strike was the only option left to them. He said,” We work every day, including Saturdays and Sundays, on Christmas Day, Easter, we work 365 days a year, 40 hours a week, yet there is no sick leave for us. There are no incentives for us.’’ Another said, “With all the money we are making for them, they are paying us N13, 000 as basic salary and we receive no bonus. We will be here tomorrow again and the day after, until our demands are met. We are also demanding that the Human Resource manager, Mrs. Deola Kagho, be sacked immediately.” They alleged that Khago is a turn coat who is colluding with their management to oppress them. Some of the inscriptions on the placards were: “365 days of working without bonus is totally unfair; ShopRite is practicing modern day slavery; All we are saying is, treat us fairly.” When Island News visited the store, its management refused to comment on the incident.
However, the firm has since sacked most of the rebel staff, save their loyalists, replacing them with newly recruited sales people. One of the laid off staff who spoke anonymously explained the management had started paying them off. Last Thursday, the workers went on another protest at the Nigerian Labour Congress secretariat Yaba. The National President, National Union of Shop and Distributive Employees, Mr. Kelly Ogbaloi who spoke on behalf of the workers asked that policemen drafted to Shoprite’s premises should be withdrawn and‘‘ Shoprite should stop forthwith the purported recruitment going on as there are no vacancies existing under the present circumstance. All parties should restore the status quo as a prerequisite to dispute resolution.’’ The Police Public Relations Officer, Mr. Frank Mba, said the Lagos Police Commissioner, Mr. Marvel Apkoyibo had called the parties in the matter to a meeting to find a solution to the impasse. He denied allegations that Apkoyibo ordered that the workers be arrested or shot.
Shoprite in 2009 had similar issues with its staff which also resulted in them going on strike. Over one hundred employees of the store, in the second week of that year created a scene at the mall when they downed tools to stage a protest over poor working conditions and remuneration. The protesters, wielded anti-management placards and chanted solidarity songs for hours. They alleged that, since they began working for the store in 2005 the supermarket’s management had failed to review their wages. The aggrieved workers further alleged that they were not paid bonuses during the festive season and appealed to the supermarket’s management to provide them with a staff bus in order to improve their transportation. “It’s very ironic in this store we work as elephants, and yet, eat as ants. For a long time now we have been appealing to our top management to look into these issues but they keep giving evading the subject. Hence our decision to make our grievances known to the world,” said one protester. The aggrieved workers pointed out that their counterparts in South Africa, where Shoprite originates, have better working conditions.
Shoprite which opened for business in Nigerian at the last quarter of 2005, at The Palms Shopping Mall, is no stranger to controversy. Earlier in the year the store was accused of manipulating Value Added Tax (VAT) charges. An aggrieved customer, Rita Okoji sued the store for alleged excessive Value Added Tax (VAT) charges to members of the public. In her submission in court, Okoji alleged customers were made to pay a higher percentage of VAT even when it was reverted. On May 23, 2007, the Federal Government increased VAT charged on goods and services to 10%. After nationwide protests by labour unions, the government reverted to 5% by June 23, 2007.
But Shoprite according to Okoji allegedly did not revert and for over one month kept charging 10% VAT to the tune of about N14million. It was on July 3, 2007, while queuing to pay for some items at a counter at Shoprite, Okoji saw “a very tiny sticker on the machine, advising customers to keep their receipts so that they could claim their money as soon as Shoprite reverts to 5%, as against the 10% that was then charged. I met the manager who told me the same thing,” Okoji said. She explained that the notice claimed PriceWaterHouseCooper, an auditing firm, advised Shoprite to continue charging 10% VAT because there had not been an official directive from the government though the reversal took effect from June 23, 2007. By July 25, 2007, FIRS Lagos Island Acting Regional Coordinator, G.O. Oshiga, discovered Shoprite was still charging 10% VAT and wrote to Shoprite’s managing director to reverse to 5% and remit the 10% VAT or face prosecution.
“You are expected to remit the VAT collected at the rate of 10% from 23rd May, 2007 to date to Federal Inland Revenue Service not later than seven days from the date of receipt of this letter in order to avoid criminal prosecution,” Oshiga wrote. Shoprite complied by July 26, 2007. It wasn’t until August 14, 2007, while shopping, that Okoji noticed Shoprite had reverted to 5% VAT. She tried reclaiming the excess charges on previous purchases, but was told to go to FIRS to get her refund as they said they had remitted the 10% VAT to FIRS.
“The first time, they said they’ll refund to me but now they are sending me to FIRS. They know people don’t have the time to go there. Meanwhile they are not telling their customers about the VAT refund. It is wrong,” she declared. Okoji asked the court to declare Shoprite’s action “wrong and illegal;” and compel them to advertise in two national dailies for all customers who were overcharged to come for a VAT refund.
Culled from the latest edition of Island News
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