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New Clicks Holdings - Update on Clicks Strike Action - 7 October 2005
New Clicks Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/000645/06)
JSE share code: NCL
ISIN: ZAE000014585
UPDATE ON CLICKS STRIKE ACTION - 7 OCTOBER 2005
Cape Town - Retail chain Clicks was trading out of all its 290 stores across the
country today, despite a strike called by trade union SACCAWU after the parties
failed to reach agreement on the annual wage increase.
Clicks has offered a wage increase of R225 per month to its staff within the
bargaining unit, which is an increase of 8,8% over last year and well above the
current inflation rate of 4,9%. SACCAWU has so far rejected the offer.
Michael Harvey, brand leader of Clicks, said it was unfortunate that the union
has chosen to go on strike after five months of wage negotiations. He said
Clicks believed the offer is fair and reasonable in the current environment.
The bargaining unit consists of 3 271 members, including 1 655 SACCAWU members.
All permanent employees of Clicks also participate in a bonus scheme which is
based on the performance of the individual store.
"We would like to apologise to our valued customers for any inconvenience that
may have been caused by the strike, and give the assurance that we are doing
everything possible to minimise disruption in our stores."
Harvey said the primary focus for Clicks was to ensure that its stores remained
open and fully stocked to provide an uninterrupted service to its customers.
"In order to achieve this, Clicks has trained and deployed contract workers and
extra security has been arranged to ensure the safety of Clicks customers and
staff in its stores throughout the country."
He estimated that 70% to 80% of staff within the bargaining unit in Gauteng had
stayed away from work today, while the number of staff off work in the coastal
regions was about 50%.
Clicks reports sporadic labour incidents at about 25 of its stores, which has
resulted in these stores being closed for short periods during the day. These
stores are mainly in Gauteng. No damage to property has been reported.
Six union members were arrested by the SA Police Services earlier today after an
incident at the Clicks distribution centre in Centurion where deliveries were
interrupted and a security guard assaulted.
The three Clicks distribution centres in Centurion, Durban and Cape Town are
operating normally and continuing with deliveries to stores across the country.
Harvey said it was too early to determine any financial impact on Clicks as a
result of the strike.
The parties have not been able to agree on strike rules and this has been
referred to the CCMA who are expected to rule today. The main area of
disagreement is that the union wants access to company premises for the striking
workers while Clicks would like to keep its stores free of striking workers in
order not to affect customers. In the interim, the parties will adopt the code
of good practice contained in the Labour Relations Act.
The company has adopted a strict policy of "no work, no pay" toward staff during
any strike action.
The strike only involves staff of Clicks and does not affect the other brands in
the New Clicks stable, such as Discom, Musica and The Body Shop. The strike
does not affect the professional pharmacy staff of Clicks.
Ends
Issued by Tier 1 Investor Relations of behalf of Clicks
For further information kindly contact
Tier 1 Investor Relations
Tel (021) 702 3102
Date: 07/10/2005 05:27:26 PM Produced by the JSE SENS Department
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