Serious allegations against Shoprite regarding Checkers Sixty60

South Africa’s on-demand grocery delivery scene has exploded over the past few years, with market leaders Checkers Sixty60 in particular raking in the dough.

While it has created tens of thousands of employment opportunities in a country plagued by high unemployment, many have pointed out that labour law legislation has not kept up with this boom.

Michael Bagraim, attorney, DA MP and party spokesperson on employment and labour, told NewsDay that companies are increasingly using independent contractor agreements to sidestep labour laws, leaving workers with “no protection, no benefits, nothing.”

“Many purported employers try their utmost to sign independent contractors’ agreements with these people to try and avoid the labour laws altogether,” he said.

Gig work, also known as the gig economy, allows individuals to work on their own time and schedule, typically on a project or task-based basis. South African law classifies them as “independent contractors.”

This contrasts with traditional employment, where workers are assigned specific hours and locations.

However, according to accounts from multiple former and current delivery drivers speaking to NewsDay, in practice, “being independent contractors is a farce.”

Many individuals, especially drivers, report being treated as full-time employees without receiving the benefits and protections afforded to permanent staff, sparking an “ongoing fight” over their employment status.

“These services promote themselves as opportunities for independence, allowing drivers to set their own hours or earn additional income as a ‘side hustle’,” wrote Nick Fabré from the People’s Legal Centre.

“But it also leaves them vulnerable to exploitation and with little recourse to legal remedies,” he added.

“They’re just using independent contractors’ contracts as some sort of cover-up to try and avoid the relationship of employment,” said Bagraim.

Once classified as independent contractors, workers lose labour protections and are governed solely by their contracts.

Bagraim said he often spends time in court and at the CCMA arguing that many of these workers are actually employees, using various legal tools to challenge their contractor status.

This can be based on factors like statutory deductions, integration into company structures, or meeting criteria under Section 200A of the Labour Relations Act, though it remains an uphill battle.

Independent contractors, or full-time employees?

NewsDay obtained access to WhatsApp group chats of Checkers Sixty60 drivers, with their Pingo managers, for stores in KwaZulu Natal. Pingo is a Shoprite subsidiary that provides delivery services to Checkers Sixty60.

While claimed to be “independent contractors” or “brand ambassadors,” the group does not operate like the textbook definition. 

Organisational team leaders/supervisors tell drivers exactly when they need to be at the shop, how long they have to work, and the repercussions of not logging on when they need drivers.

Here, a driver shared that he had worked long hours for seven consecutive days and would not be available the following day after being told to report to the shop early.

The supervisor replied, “I am so sick and tired of drivers who want to question me! When I move you guys, don’t complain. If you don’t like what is happening, go to another site.”

When these ‘independent contractors’ cannot make it to work, it is up to them to find a replacement, or else they get removed.

“We have no independence. I don’t know why they call it ‘independent contractors,’” said one former driver, who spoke to NewsDay on condition of anonymity.

After he questioned the instructions of the organisational team leader on the WhatsApp group to be at the site at a certain time, he was immediately removed.  

When he tried to log back on to his Pingo account, it showed that his account had been suspended, with no explanation. The often arbitrary removal of drivers from groups is not uncommon.

“It always happens as soon as you raise a query, they remove you. Now the problem is, do you have a fight with Pingo or Checkers?” who both wipe their hands clean, said Bagraim.

“Under current legislation, gig workers… can be dismissed arbitrarily without recourse to the Commission for Conciliation, Mediation and Arbitration or labour courts,” explained Fabré.

“Most digital platforms reserve the right to deactivate a user’s account for reasons that would not qualify as fair dismissal under South African labour law.”

“It’s always easy to get rid of an independent contractor. There’s no rights at all. Absolutely nothing,” he added.

Shoprite responds

“As the market-leading sixty-minute delivery service in South Africa, Checkers Sixty60 is a highly desirable client for drivers, offering best-in-class rates and delivery volumes in an increasingly competitive landscape,” said Shoprite.

“Established channels and procedures are in place through which drivers can raise any concerns or grievances.”

“Regrettably, from time to time, contractors are terminated for poor driving behaviour or other non-compliance issues,” added the group.

In response to Fabré’s piece, Adele Kruger Taljaard, Head of Group Corporate Communications and PR at Shoprite, said the views overlook South Africa’s socio-economic context and are “misleading.”

This is where responsibly managed platform work “creates meaningful income-generating opportunities for thousands who may otherwise be excluded from formal employment.”

Taljaard said that drivers contracted to Pingo are treated “with fairness, dignity and in full compliance with South African labour regulations.” Suggesting otherwise “is misleading.”

However, Bagraim said that this claim is because the existing laws do not extensively cover independent contractors.

Taljaard said that drivers receive a monthly fuel fee adjusted to petrol prices and can access a lease-to-own motorcycle option with a maintenance allowance.

While not legally obligated, Taljaard said that Pingo has secured insurance for all drivers, covering disability, hospitalisation, and third-party liability.

“As South Africa’s largest private sector employer, we remain committed to providing economic opportunities and supporting the communities in which we operate.”

Legal and legislative challenges

There is a growing push to expand labour protections for independent contractors, particularly delivery drivers, but Bagraim said it faces strong resistance from employer groups.

While trade unions like SAFTU are advocating for stricter laws, similar to those introduced in England, employer bodies, including Business Unity South Africa, warn that such changes could discourage job creation.

These debates are unfolding at Nedlac, where both sides are weighing the need for protection against South Africa’s high unemployment, underscoring that “there’s always a give and take in these situations.”