HARARE – TM Pick n Pay Zimbabwe’s Managing Director, Malcolm Mycroft, faces accusations of racism, externalisation of funds, and unfair salary remuneration, impacting local employees.
Sources reveal that Mycroft allegedly awards himself and fellow South African executive Walter Stephens hefty salaries while local employees receive significantly lower pay.
Mycroft reportedly approved a monthly salary of US$45,000 and an annual bonus of US$150,000 for himself, regardless of company performance.
Stephens, a senior buyer, earns a monthly salary of US$20,000, surpassing that of his seniors and peers.
In contrast, the lowest-paid worker receives a ZiG equivalent of US$230.
The scandal at TM Pick n Pay Zimbabwe, a subsidiary of Meikles Limited, has raised concerns about potential unfair labour practices and externalisation of funds.
Employees have called for an investigation by the National Economic Conduct Inspectorate, citing concerns about prioritising foreign executives over local employees and engaging in unauthorised foreign currency transactions.
An aggrieved employee stated: “It’s utterly unacceptable and racist that Mycroft is prioritising the interests of himself and his fellow South African executives over those of local employees, who on meagre salaries.
“The fact that he is awarding himself and Stephens such exorbitant salaries while the company’s performance is questionable, raises serious concerns about his leadership and commitment to fairness.”
In the year to the end of February 2024, units sold declined by 4.8%.
John Moxon, chairman of Meikles, said this was, “due to the combined effect of uncompetitive US dollar prices for formal retail and depressed consumer demand.”
Pick n Pay, South Africa’s third-largest grocery retailer, warned in May of an impending full-year loss, mainly resulting from a hefty R2.8 billion (about US$155 million) impairment charge on its core supermarket stores, which have struggled with poor performance and losses.
When reached for comment, Thabani Mpofu, company secretary of Meikles Limited, declined to pass comment on the allegations, choosing to focus of general issues around the giant retailer.
“We cannot comment on specific allegations, but we can assure our stakeholders that we are committed to transparency, accountability, and fair labour practices.
“Any issues raised will receive our attention,” added Mpofu.
TM Pick n Pay Zimbabwe has 73 outlets in Zimbabwe. The allegations come as the group faces challenges in South Africa and Zimbabwe, with a 4.8% decline in units sold in the year ending February 2024.
Meikles Limited Chairman John Moxon attributed the decline to uncompetitive US dollar prices and depressed consumer demand. Pick n Pay, South Africa’s third-largest grocery retailer, warned of an impending full-year loss due to a hefty impairment charge on its core supermarket stores.
Similar allegations of racism and labour law violations have been raised against Jonas Amstad, General Manager of The Meikles Hotel (now Hyatt Regency Harare), which was sold to United Arab Emirates-based Albwardy Investment by Meikles Limited five years ago.
Hotel workers have approached the ministry of labour detailing grievances against Amstad.
