Pick n Pay and the Economic Freedom Fighters (EFF) have had a constructive meeting with a nominated delegation of black former Pick n Pay franchisees and market store owners.
According to a statement, the meeting was created to discuss allegations that Pick n Pay’s franchise model and market store initiative was damaging to the interests of black owners and raised systemic issues of racial and financial discrimination.
WHAT CAUSED THE ISSUES?
In late August, EFF leader Julius Malema issued an ultimatum to Pick n Pay.
The political party threatened to take ‘shutdown’ action against Pick n Pay and accused the retail giants of ignoring their requests for a meeting.
Malema told the press that leadership within Pick n Pay have essentially ‘turned their backs’ on poor franchisees.
Black business owners, who have opened their stores in local communities, feel and say that they have been abandoned by Pick n Pay and now are in debt.
“We have written two letters to Pick n Pay requesting a meeting with them to raise the concerns of the exploited Franchisees, but they have refused. Bosses have used black people to establish their presence in communities – but have now have turned against them,” Malema said.
“If they continue to refuse to meet the EFF, they will leave us with no option but to close all Pick N Pay stores in South Africa. We will write to them the third and final letter, and we demand that they must positively respond this time, or we will be forced into militant action.”
THE IMPORTANT MEETING AND OUTCOME
In a collaborative effort to build trust and to seek a consensus on the way forward, the EFF and Pick n Pay have agreed to the following:
- An independent inquiry led by a senior counsel will be set up to review the company’s actions, policies, and conduct, in relation to its franchise and market store scheme, and in particular, the outcomes for former black franchisees. The senior counsel and the scope of the inquiry will be agreed by the parties;
- Transparent one-on-one consultations will take place as a matter of urgency between Pick n Pay and individual former franchisees and market store owners to investigate and seek to resolve individual grievances raised;
- For the duration of the independent inquiry, Pick n Pay will suspend any legal action for the recovery of monies owing by any former franchisee.
The EFF delegation was led by EFF Deputy President Floyd Shivambu and Treasurer General Omphile Maotwe, and the Pick n Pay delegation was led by Group Chief Executive Officer Pieter Boone and Lead independent non-executive director Jeff van Rooyen and took place in Johannesburg.
BUSINESS REPORT