CHOPPIES DEFENDS RESTRUCTURING, PROMISES TO REHIRE AFFECTED STAFF

Choppies Enterprises Limited has defended its restructuring exercise, which it says will affect less than 5 percent of its workforce.

The retailer's response comes after BOFEPUSU accused the company of betraying workers and retreating from its highly publicised promise to pay a minimum wage of P4,000.

In a statement issued this week, BOFEPUSU described the restructuring as an "appalling betrayal of trust," arguing that it amounted to a withdrawal from the living wage promise made less than a year ago.

Responding to the Business Weekly & Review , Group CEO Ramachandran Ottapathu confirmed that a restructuring exercise is underway but rejected suggestions that it is linked to the company's living wage initiative.

"There is a restructuring exercise taking place. In this, only less than 5 percent of the staff will be affected. This is mainly due to the economic downturn and the introduction of new process improvements," he said.

Ottapathu added that affected employees would be given opportunities to return as Choppies continues expanding its store network. "As we open more shops, we will be re-employing the affected ones in the next 12 to 15 months."

He further dismissed suggestions that the restructuring represented a retreat from the company's commitment to improving worker welfare. "The economic downturn was not in our projections anyway – it's only temporary. This has got nothing to do with our commitment to pay the higher living wage."

BOFEPUSU, however, argues that the explanation raises more questions than answers. Secretary General Robert Rabasimane said the federation found it difficult to understand the company's reasoning, noting that Choppies had continued opening stores in recent years without retrenching workers and promising to rehire them later.

The restructuring comes just months after Choppies struck a far more optimistic tone with investors. In a trading statement released in March, the retailer said it had continued paying the living wage and had employed an additional 626 staff despite economic challenges. Now, the company is engaged in a restructuring that will result in job losses.

Choppies ' own recent financial disclosures reveal the pressure beneath the surface. For the six months ended December 2025, group revenue rose 8.6 percent to P5.1 billion. However, operating profit dropped 20 percent to P152 million, while profit from continuing operations declined 33 percent to P77 million as costs grew faster.

In both its March trading statement and interim results, Choppies identified the implementation of the living wage in Botswana among the factors weighing on profitability, alongside the diamond market slump, government austerity measures, inflation, the devaluation of the Pula, and intensified promotional activity in a constrained consumer market.

While Ottapathu insists the living wage played no role in the restructuring decision, BOFEPUSU argues that the timing inevitably invites scrutiny.

Rabasimane also raised concerns over notice periods reportedly being offered to affected workers – allegedly just one month, when previous retrenchment exercises involved longer notice periods. He further claimed that workers had been told the arrangement had been discussed with the government. The federation wants clarity on which officials were engaged so the matter can be properly interrogated.

BOFEPUSU was equally dismissive of Choppies' promise to rehire affected employees when new stores open, arguing that existing labour legislation already provides for preferential consideration of retrenched workers when vacancies arise. Rabasimane also questioned why the company would proceed with workforce reductions if it expects to require additional employees within the next 12 to 15 months as its expansion programme continues.