Strike wipes R74m off Dis-Chem profits
Five-month stoppage affected operations at three of group’s four distribution centres and involved 2,300 of its 15,000 staff
Dis-Chem says a strike by employees that lasted nearly five months shaved up to R76.4m off its profits in the year to February. The strike, which started on November 16 2018 affected operations at three of its four distribution centres and involved 2,300 of its 15,000 staff who were affiliated to the National Union of Public Service and Allied Workers.
Strike-related expenses, such as the bringing in of additional staff, security, loss of logistic fees, relocation costs and legal fees amounted to R50.4m. The pharmacies group said it also cost it about R26m in lost sales.The total strike cost of R76.4m was equal to about 10% of its net profit of R765m for the period under review.The strike ended with Dis-Chem not giving in to the union’s demands for a minimum wage of R12,500, an annual increase of 12.5% guaranteed for the next three years, and a guaranteed annual bonus.Dis-Chem CFO Rui Morais said the group made some changes to how it granted bonuses but it was looking at ma...
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