Dubious Spar employer ordered to pay millions of rands to workers for unlawful deductions, non-compliance with National Minimum Wage (NMW) and overtime among others
The Department of Employment and Labour welcomes the outcome of Commission for Conciliation, Mediation and Arbitration (CCMA) to grant eight Arbitration awards in the department’s favour against the eight Spar outlets owned by Mr. Giannacoupolous.
The awards compel the franchisee to comply with compliance orders issued and pay all complainants an amount of R 11 935 478, 00.
The respondent is further ordered to comply with clauses 3.3 to 3.16 of the same compliance order within 14 days upon receipt of the awards. Failure to comply with the awards will result with the respondent having to pay accrued interest in terms of section 75 of Basic Conditions of Employment Act (BCEA).
The decision follows the inspections conducted in May 2019 after the Department's Inspection and Enforcement Services (IES) received a series of complaints of alleged gross violations of labour laws which were happening at Spar stores across the country. On investigation, all the stores which happened to be violating the labour laws were found to be owned by Mr Giannacoupolous.
Ten stores were affected with nine based in Gauteng and one in the North West. Issues raised in terms of labour laws violations included amongst others:
- Failure by the employer to issue employees with contracts;
- Long working hours without overtime compensation;
- Sunday pay, public holidays and leave not granted according to the law
- The complaints also related to the hiring of illegal foreign nationals; and
- Illegal deductions.
The inspections were conducted at Spar Orchards, Dely Road, Doornport Spar, Montana Spar, Wierda Spar, Silverton Spar, Zambezi Super Spar, Rietfontein Spar, Silverplace Spar and Safari Spar in Rustenburg. These outlets employ 565 workers.
The Department of Employment and Labour Inspector General, Aggy Moiloa, said the Department is delighted that the NMW, which was promulgated in 2019, is bearing much desired fruits. “The relentless work that is carried out by our inspectors is contributing towards making a difference in the lives of vulnerable workforce. I exhort employers to make it their business to respect and comply with the labour laws of our country”.
Enquiries:
Adv. Michael Msiza
Provincial Chief Inspector: Gauteng
Cell: 082 900 8131
Teboho Thejane
Departmental Spokesperson
Cell: 082 697 0694
E-mail: Teboh.thejane@labour.gov.za
