Cape Town - Following threats by EFF leader Julius Malema to shut down Pick n Pay supermarkets nationwide, the retailer has held talks with the party and a delegation of black former franchisees and store owners to discuss allegations of unfairness and exploitation.
Among the allegations were that Pick n Pay’s franchise model and “market store” initiative were damaging to the franchisees’ interests.
The franchisees and the EFF also raised issues of systemic racial and financial discrimination.
The EFF delegation to the talks, held in Johannesburg, was led by EFF deputy president Floyd Shivambu and treasurer-general Omphile Maotwe.
The Pick n Pay delegation was led by group chief executive Pieter Boone and lead independent non-executive director Jeff van Rooyen.
During the talks it was agreed that an independent inquiry led by a senior counsel would be set up to review the company’s actions, policies and conduct in relation to its franchise and market store scheme, particularly the outcomes for former black franchisees.
It was also agreed that transparent one-on-one consultations would take place as a matter of urgency between Pick n Pay and individual former franchisees and market store owners to resolve individual grievances raised.
The talks come after a demand in Cape Town last week by the provincial ANC that Pick n Pay and the provincial Department of Economic Development and Tourism (Dedat) account to the legislature about the public funds spent on the retailer’s township economy project.
On Tuesday, provincial ANC finance and economic opportunities spokesperson Nomi Nkondlo said that the retailer had been in touch over a possible meeting this week.
She said she would be directing her questions to the Finance and Economic Opportunities MEC in the legislature on Thursday.
A Pick n Pay spokesperson said: “We are open to engagement, as we have said. We have launched a comprehensive set of steps, including an independent inquiry, so we hope that all stakeholders can draw confidence from that.”
mwangi.githahu@inl.co.za