Business20.09.2024

Big questions about Checkers Sixty60 delivery drivers

Shoprite’s Checkers Sixty60 delivery service has recently come under fire over an alleged preference for hiring foreigners, avoiding paying employee benefits, and insufficiently vetting delivery drivers.

One of the main issues that critics of the country’s biggest on-demand delivery service have is that Shoprite regards its delivery drivers as “independent contractors” rather than employees.

That approach is similar to Uber and other on-demand services, who have been criticised for using the employment structure to avoid paying additional benefits over and above regular wages.

Democratic Alliance MP and attorney Michael Bagraim, previously slammed the company in feedback to GroundUp.

“They get no benefits whatsoever and they have no protection of our labour law,” said Bagraim. “It forces the purported employees to take as many trips as possible, putting their lives in danger.”

Bagraim argued that South Africa’s courts were likely to rule that the drivers were employees due to the fact that many of them worked the minimum number of hours in a month to meet that definition and their remuneration was too low for independent contract work.

“The courts are quite harsh in determining whether a person is actually an employee or an independent contractor,” said Bagraim.

“In this particular instance, I think they [Shoprite] would be hard pressed to prove they are true independent contractors.”

“Unless the drivers work for a couple of the companies at different times then it cannot be said that they are independent contractors.”

“The law is absolutely clear. Should anyone work more than 24 hours in one month for the same employer and they earn less than R21,000 per month, then they automatically with the effluxion of time and by deeming of the law, become permanent employees.”

Motorcycle Safety Institute of South Africa founder Hein Jonker previously raised concerns over the driving qualifications of on-demand delivery service drivers.

Jonker explained that many of the foreign nationals driving for these services came from countries where a car licence covered all vehicle classes below that, including scooters and motorcycles.

“In other African countries, they may not have gone through a motorcycle licence test or any motorcycle training; they’ve learnt from their friends,” said Jonker.

“They come to this country with a licence that includes a motorcycle licence, and off they go.”

Shoprite previously declined to comment on questions from MyBroadband about how it vetted Sixty60 drivers for driving proficiency.

Alleged lack of local employees

Questions have also been raised about the high number of foreign nationals working as Sixty60 delivery drivers.

Reputed South African Twitter/X account Goolam (@goolammv) recently accused Sixty60’s delivery partner of employing barely any locals.

Goolam has gained a reputation for the accuracy of sensitive information they release relating to South African politics and cases of alleged corruption against high-profile individuals.

Former minister Lindiwe Sisulu recently collaborated with Independent Online in a botched “unmasking” of the person behind the account, claiming Goolam “knew too much, even when ministers are appointed.”

Goolam alleged that Sixty60 had created 9,987 jobs, around 9,900 of which were held by foreign nationals. That works out to roughly 99.1% of the total workforce.

He pointed out that the drivers were employed by Pingo Delivery, a last-mile delivery company in which Shoprite owned a 50% stake. The other half of the company belongs to RTT Logistics.

Goolam also accused the Department of Labour of being silent on the issue.

South Africa’s labour laws allow the Department of Home Affairs to issue special permits on foreign employment for certain companies which require critical skills that might not be easy to come by among locals.

It would be strange if a company were permitted to employ such a high proportion of foreign workers for jobs that do not require critical skills.

There has been one major case in which illegal foreign nationals were confirmed to be working for Sixty60.

In May 2023, the Department of Labour apprehended eight illegal foreigners working for the service at a store in the Western Cape.

MyBroadband asked Shoprite, RTT Logistics, and Pingo Delivery for comment on Goolam’s accusations.

Shoprite declined to comment, while RTT Logistics and Pingo Delivery had not provided feedback by the time of publication.

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