Woolworths Holdings (Woolies) has hiked its hourly rate for its South African employees above the retail sector and the country’s minimum wage.
In its remuneration report found in the Woolies’ 2022 integrated annual report released on Friday, the company said from April 1 its hourly rate was R36.55, 21% above the retail sector minimum wage and 57.6% above the South Africa minimum wage.
“A further adjustment as per our normal salary review cycle is effective in October 2022,” the fashion and grocery retailer said.
Last year Woolies committed to invest an additional R120 million over three years, to adjust Woolworths SA’s hourly base pay from R33.40 to R41.25 in 2023, which amounts to a 23.5% increase.
“We commenced with the concept of a ‘just wage’ in 2019, a wage which would recognise the critical need to address the disposable income of our store staff and to reduce the remuneration gap in the context of the socio-economic environment in South Africa. One of the intents of the ‘just wage’ is to deliberately move away from the minimum wage legislative requirements to providing a living wage to our more than 20 000 store staff,” the group said.
Woolies said the group CEO Roy Bagattini and executive directors received a 4.16% pay increase. Senior executives and management in South Africa had a 4.4% pay hike, while Australia had a 2.66% increase. The staff in South Africa received a 5.4% wage increase, while Australian staff received a 1.88% pay increase.
“Pay increases are effective on October 1, each year. Following a year of zero percent increases for the group CEO, executive directors, senior executives, and management in South Africa and Australia, inflation-linked increases were awarded effective October 1, 2021. The group continues to address and reduce the pay gap between management and staff by awarding staff higher percentage increases than management,” Woolies said.
In 2022, Bagattini’s base salary in Australian dollars was A$1.02 million (R11.2m), and his total remuneration including bonuses and benefits was A$1.9m.
Bagattini’s South African base salary was R5.4m, and his total remuneration, including bonuses was R15.4m.
“Bagattini’s remuneration is paid in rands and Australian dollars to reflect the time and focus spent on the different geographies,” Woolies said.
Group financial director Reeza Isaacs’ base salary was R6.6m for 2022, and his total remuneration which includes company benefits and bonuses was R18.3m.
“Reeza Isaacs was awarded R1.2m, disclosed in benefits, on recognition of his substantial contribution to the improved financial position of the group,” the company said.
Group operating officer Sam Ngumeni’s base salary was R7.8m for this year and his total remuneration, which includes bonuses and company benefits was R23m.
Looking forward, Woolies said the global macroeconomic outlook remained challenging, with rising inflation and interest rates, continued supply chain challenges as well as ongoing volatility and uncertainty.
“While Australian consumers stand to benefit from strong household balance sheets and low levels of unemployment, this is not the case in South Africa, where consumption spending faces the additional headwinds of high unemployment and severe energy shortages. Notwithstanding these near-term challenges, the business is better positioned, financially and operationally, to invest for the future,” it said.
Woolies said its balance sheet had real fire-power and the company had significant scope within its various businesses to grow revenue and profitability, irrespective of the macro context.
“We are allocating our capital accordingly, and are on track to rebuild our financial credentials and drive long-term value creation. Throughout this, we will ensure that our values as a company, and our value as a business, remain inextricably linked, because we know that it is only through combining business performance with responsible, values-driven social conduct, that we’ll drive sustainable growth, strengthen our brands, and keep our people and customers inspired and engaged,” it said.
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