Big changes for Checkers Sixty60 in South Africa
Checkers Sixty60 is set to undergo a series of changes, with ownership structures and drivers affected.
Despite wearing Checkers colours and branding, Sixty60 drivers are not actually employed by Checkers or its parent company, Shoprite – yet.
Shoprite uses Pingo, a joint venture with RTT On-Demand, which relies on over 6,000 independent drivers for last-mile logistics.
Shoprite was heavily criticised for its outsourcing, which many argued allowed it to distance itself from direct responsibility for the drivers’ working conditions.
Experts stated that the model pushed drivers to maximise their time on the road, creating dangerous working conditions.
However, in October, the Competition Tribunal unconditionally approved the proposed transaction in which Checkers would acquire a larger shareholding in—and wholly own and control—Pingo.
Another issue facing the delivery service is the high number of foreign workers on the platform.
Speaking with Just Share at Shoprite’s Annual General Meeting, the group’s chairperson, Wendy Lucas-Bull, admitted that foreigners make up the bulk of the country’s drivers.
She noted that only 23% of the delivery workforce are South African.
That said, she said that the group is in the process of a comprehensive due diligence review of Pingo as per the acquisition’s process.
She added that the company is actively recruiting South African drivers, with multiple training centres and a 10-week training programme.
Nevertheless, despite the company’s efforts to attract and retain local drivers, only 8% of South African trainees have been retained after two years.
The use of foreign labour has reached top government offices, with Employment and Labour Minister Nomakhozana Meth pledging to address the issue.
Sectors where foreign workers are heavily employed, such as the restaurant industry, have already faced raids from the department and the dismissal of foreign workers employed without proper documentation.
With intensified inspections planned, foreign Sixty60 drivers face heightened job insecurity.
Pay pressures and safety
Not only are there greater employment fears for drivers but there are also question marks over their pay.
Lucas-Bull said that Pingo’s drivers earn far more than minimum wage but did not disclose specific earnings.
She added that drivers benefit from additional policies, including funeral cover and insurance, among other unspecified benefits.
Reports show that an average Sixty60 driver earns around R7,600, with an R350 daily minimum fare.
This is above the R27.58 per hour minimum wage in South Africa, which reaches R220.64 for the day.
That said, the R350 daily minimum must also be used to cover their own fuel costs and motorbike rentals.
On average, fuel expenses reach R3,200 monthly, while the weekly motorbike rental costs R400, or R1,600 per month.
Thus, the driver is left with a net income of just R2,800 after deducting their operational expenses.
Pingo have also attempted to remove the R350 daily minimum on several occassions. Although these attempts were met with heavy resistance from drivers and the R350 minumum was reinstated, it highlights the risks facing drivers.
When it comes to safety, Lucas-Bull said that drivers operate on South African roads, which have high accident rates.
Shoprite has implemented improved safety measures for drivers, such as better equipment and uniforms over time.
The company also thoroughly investigates each fatal accident, with only one-third being delivery-related.
She also added that drivers are not incentivised based on delivery speed.
Moreover, when weather conditions are unfavourable, the company slows down deliveries to ensure the safety of drivers.
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