Pick n Pay pauses retrenchment process affecting 22,000 workers
The Minister of Employment and Labour, Nomakhosazana Meth, has intervened in Pick n Pay’s planned retrenchment process affecting 22,000 employees, with the current CCMA process halted.
The retailer submitted a Section 189 notice on 4 May 2026, commencing a 60-day consultation process towards the retrenchments.
The process was aimed at improving flexibility and operational efficiency within the group.
The retailer noted at the time that its current labour arrangements are above market norms and not in line with contemporary shopping trends.
This included minimum guaranteed hours, inflexible scheduling practices, and certain benefits and allowances.
Experienced and well-trained Pick n Pay store staff only work from Monday to Friday, but most clients do their shopping on Friday, Saturday, and Sunday.
This has created a major mismatch between customers and staff, it said.
Pick n Pay believes that the problem needs to be addressed to return the business to profitability and protect the group from future risks. It recently declared a total comprehensive loss of R185 million.
The retailer said it was not looking to cut jobs through the process and was open to alternatives that would avoid the retrenchment of affected employees and ensure jobs are saved.
The Department of Employment and Labour has now stepped in, after organised labour and Pick n Pay CEO Sean Summershad called for the Minister’s intervention in the matter.
The DEL said that the Labour Relations Act 66 of 1995 allows employers to dismiss employees based on their operational requirements.
Meth, under the expanded mandate to preserve jobs, met with Pick’n Pay’s top executives, including Summers, as well as leaders of major worker unions.
This included the Congress of South African Trade Unions (COSATU) and the South African Commercial, Catering and Allied Workers Union (SACCAWU).
The department said the intervention successfully steered the parties toward common ground, with job security and economic stability as top priorities.
Following an intensive six-hour engagement, the parties have agreed to return to the bargaining table.
“I want to highly commend the leadership of Pick n Pay, COSATU and SACCAWU for their maturity, patriotism and willingness to find each other,” said Meth.
“By agreeing to actively look for alternative, sustainable solutions through the collective bargaining negotiations, it is a positive step for workers, the retail sector and South Africans in general.”
The Department said that while the talks are currently at a highly delicate stage, the mood is optimistic and the halt of the CCMA process is a major milestone.
The parties have also agreed to handle the discussions with the utmost care and sensitivity.
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