HARARE – Controversy has erupted at TM Pick n Pay Zimbabwe, a subsidiary of Meikles Limited, with allegations of racism, foreign currency looting and unfair salary practices emerging against the company’s Managing Director, Malcolm Mycroft.
According to sources who spoke to Nehanda Radio, Mycroft has been awarding inflated salaries to himself and a fellow South African executive, Walter Stephens, while local employees receive significantly lower remuneration.
Stephens, a senior buyer, allegedly earns a monthly salary of US$20,000, surpassing that of his seniors at TM Pick n Pay and even those at the head office of Meikles. In contrast, the lowest-paid worker at the company receives a mere ZWG 5,000 (US$230)
Mycroft has also been accused of approving a hefty salary for himself, reportedly US$45,000 per month, accompanied by an annual bonus of US$150,000, regardless of the company’s performance.
These allegations have raised concerns about potential forex looting and unfair labor practices.
“It’s unacceptable and racist that Mycroft is prioritising the interests of himself and his fellow South African executives over those of local employees, who are struggling to make ends meet on meager salaries,” a senior official from Meikles told Nehanda Radio.
“The fact that he’s awarding himself and Stephens such inflated salaries while the company’s performance is questionable, raises serious concerns about his leadership.”
The employees have called for the National Economic Conduct Inspectorate to investigate the issues, amid concerns that the company may be prioritising foreign executives over local employees and engaging in unauthorised foreign currency transactions.
The company has 73 outlets in Zimbabwe. These allegations are coming at a time when Pick n Pay, as a group, is facing challenges both in South Africa and Zimbabwe.
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 either confirm or deny the allegations.
“We cannot comment on specific allegations, but we can assure our stakeholders that we are committed to transparency, accountability, and fair labour practices,” Mpofu told Nehanda Radio.
“Any issues raised will receive our attention,” he added.
Hyatt Regency Harare The Meikles, formerly Meikles Hotel, which was sold to United Arab Emirates-based hotel concern Albwardy Investment by Meikles Limited five years ago, is facing similar allegations of racism and labor law violations.
Hotel workers have since approached the Ministry of Labour and Social Welfare detailing grievances against Jonas Amstad, the hotel’s general manager.
“As we speak a number of employees have already been rendered redundant and their contracts terminated.
“Some service providers have their contracts lined up for cancellation and imagine these employees too will soon be jobless,” the employees said in a letter submitted to the Ministry.
“We are strongly against his racist behaviour and militant attitude towards management and staff in a hospitality setup like this,” the letter added.
Ko ndiye adii hake ?? That’s hw it is done in Zim