Woolworths executives get 30 percent pay cuts
WOOLWORTHS has followed in the footsteps of international companies like Disney and British Airways to announce that its directors, group chief executive and senior executive managers will forego up to 30 percent of their fees and salaries over the next three month as foot traffic and general sales volumes plunge due to the coronavirus lockdowns.
This comes as South Africa enters the 11th day of a 21-day nationwide lockdown to stem the spread of the virus. Only essential retailers, which includes the food division of Woolworths, can trade during the shutdown.
The retail group, in a trading update on Monday, said savings from cuts will be used to provide financial support to staff who find themselves in “extreme hardship”.
Woolworths, which has operations in 11 other countries on the continent as well as in Australia and New Zealand, said that in SA the majority of its food stores remain open. In the period immediately prior to the lockdown, it saw “unprecedented demand on specific products that consumers considered essential”.
This demand has begun to moderate, however, as “shopping patterns are re-set and as confidence in the food supply chain grows”.
Food sales in the four weeks to the end of March increased by 27,6 percent on the prior comparable period, it said. – Fin24