Shoprite braces for higher Kenya staff costs in union deal

South-African retailer Shoprite is facing increased staff costs after it signed a memorandum of understanding with Kenya Union of Commercial Food and Allied Workers (Kucfaw), setting the stage for negotiations on staff remuneration.

Shoprite, which currently runs three branches locally with plans to open more, and Kucfaw signed the MoU on Thursday last week in a deal that will see its workers join employees of retailers like Chandarana and Tuskys that are under the union.

Kucfaw negotiates salary increments and overall working terms for its members. Shoprite currently employs about 500 people in Garden City Mall, Westgate Mall and the Waterfront Mall in Nairobi, and Mombasa’s City Mall.

“We are glad that Shoprite now recognises the union and has pledged to work with us in ensuring that employees are well catered for. This agreement paves the way for salary negotiations for the employees,” said Kucfaw secretary-general Bonface Kavuvi.

“The next move is going to be drafting of the Collective Bargaining Agreement, where we will together set various bands and the salary range as well as various allowances,” he said.

The signed document details how the two entities will work in the interest of the employees under the union and touch on the negotiable issues, including issues on pay, overtime, method of wage and salary payment, paid leave, duration of employment, and terms of employment.

“The union undertakes that no employees shall be compelled to become a member of the union and the company undertakes that no employee shall be penalised n account of this union membership,” said the statement.