Zambia to revoke Shoprite’s operating license over sack of 3000 workers

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Zambia To Halt Shoprite’s Operations If Workers’ Sack Isn’t Overturned

Zambia has threatened to ground the operations of Shoprite across the country, following the retailer’s dismissal of 3000 workers who went on strike in protest of working Shopriteconditions.

According to the country’s labour minister, Fackson Shamenda, Shoprite – Africa’s biggest grocery chain – was given a condition of ‘licence revocation’ if it proceeded with the sack of its worker, and has now been given a 10-day ultimatum to review its decision.

“We told them we would revoke their trading licence if they went ahead with the dismissals,’’ he said.

“I have now given them 10 days in which to negotiate and resolve the problem. All the outlets are working normally now and I am on my way to buy bread from Shoprite.’’

A Portfolio Manager at Johannesburg-based Ashburton Investments, Savusha Kander, noted that it might be in best interest of the retailer to reconsider, given the significant business advantage Zambia offers to Shoprite quest to shore-up revenue streams from international markets.

“It appears Shoprite was within their rights to fire those workers but given Zambia’s potential it is in their best interest to come to some sort of an amicable understanding on how these sorts of things are handled.”

Zambia is the 2nd biggest market for the South African-based supermarket chain after its home market.

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