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The South African Retail Network (SARN)
The South African Retail Network (SARN), a prominent company in the retail sector, operates several
outlets across the country. Over the years, SARN has been committed to offering competitive wages
and benefits to its employees, alongside maintaining a reputation for excellent customer service.
However, recently, tensions have begun to rise between SARN’s management and the Retail and
Allied Workers' Union (RAWU), which represents a significant portion of SARN's workforce.
The conflict began when SARN, following a period of solid profitability, proposed a modest wage
increase for its employees. John Smith, Head of Human Resources at SARN, communicated to the
union via email that, given the economic conditions, the wage increase was reasonable and in line with
industry standards. The company also pointed out that the increase was part of a broader strategy to
ensure long-term financial sustainability.
However, Thuli Nkosi, President of RAWU, rejected the proposal. Instead of responding via email,
Thuli chose to call John directly, expressing her disagreement with the offer. During the call, she
argued that the wage increase was insufficient, and she asserted that SARN, with its profitability,
could afford to offer more. Thuli’s tone was firm, emphasising that the workers’ contribution to the
company’s success deserved better recognition. She communicated that the union would not accept the
current terms and would escalate the matter if necessary.
As negotiations continued, no agreement was reached, and the dispute started to affect the morale and
work environment within SARN’s stores.
As tensions escalated, RAWU formally referred the dispute to the Commission for Conciliation,
Mediation, and Arbitration (CCMA) in an attempt to resolve the issues. However, despite this referral,
the union failed to attend several conciliation sessions and instead encouraged its members to
demonstrate their commitment to the cause by taking action. Some senior members of RAWU even
argued that the CCMA process would only delay a resolution. After about a week of unsuccessful
conciliation attempts, RAWU members decided to go on strike without providing any prior notice to
SARN.
Over the following weeks, several incidents occurred at various SARN stores, including disruptive
protests, blocked entrances, and property damage. As the situation became more volatile, RAWU
announced it would escalate its actions unless SARN agreed to the union’s demands. This strike
impacted multiple SARN locations nationwide, significantly affecting operations and customer
service. The situation worsened when SARN’s management, faced with ongoing disruptions and
financial losses, began to explore other potential measures to mitigate the impact on the business,
including the possibility of retrenchments. The company’s financial position was deteriorating due to
the ongoing unrest, and it became clear that drastic decisions might be necessary to preserve the
company’s viability.
The South African Retail Network (SARN)
The South African Retail Network (SARN), a prominent company in the retail sector, operates several
outlets across the country. Over the years, SARN has been committed to offering competitive wages
and benefits to its employees, alongside maintaining a reputation for excellent customer service.
However, recently, tensions have begun to rise between SARN’s management and the Retail and
Allied Workers' Union (RAWU), which represents a significant portion of SARN's workforce.
The conflict began when SARN, following a period of solid profitability, proposed a modest wage
increase for its employees. John Smith, Head of Human Resources at SARN, communicated to the
union via email that, given the economic conditions, the wage increase was reasonable and in line with
industry standards. The company also pointed out that the increase was part of a broader strategy to
ensure long-term financial sustainability.
However, Thuli Nkosi, President of RAWU, rejected the proposal. Instead of responding via email,
Thuli chose to call John directly, expressing her disagreement with the offer. During the call, she
argued that the wage increase was insufficient, and she asserted that SARN, with its profitability,
could afford to offer more. Thuli’s tone was firm, emphasising that the workers’ contribution to the
company’s success deserved better recognition. She communicated that the union would not accept the
current terms and would escalate the matter if necessary.
As negotiations continued, no agreement was reached, and the dispute started to affect the morale and
work environment within SARN’s stores.
As tensions escalated, RAWU formally referred the dispute to the Commission for Conciliation,
Mediation, and Arbitration (CCMA) in an attempt to resolve the issues. However, despite this referral,
the union failed to attend several conciliation sessions and instead encouraged its members to
demonstrate their commitment to the cause by taking action. Some senior members of RAWU even
argued that the CCMA process would only delay a resolution. After about a week of unsuccessful
conciliation attempts, RAWU members decided to go on strike without providing any prior notice to
SARN.
Over the following weeks, several incidents occurred at various SARN stores, including disruptive
protests, blocked entrances, and property damage. As the situation became more volatile, RAWU
announced it would escalate its actions unless SARN agreed to the union’s demands. This strike
impacted multiple SARN locations nationwide, significantly affecting operations and customer
service. The situation worsened when SARN’s management, faced with ongoing disruptions and
financial losses, began to explore other potential measures to mitigate the impact on the business,
including the possibility of retrenchments. The company’s financial position was deteriorating due to
the ongoing unrest, and it became clear that drastic decisions might be necessary to preserve the
company’s viability.
