{"id":862571,"date":"2026-06-04T16:10:38","date_gmt":"2026-06-04T14:10:38","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=862571"},"modified":"2026-06-04T17:16:19","modified_gmt":"2026-06-04T15:16:19","slug":"pick-n-pay-pauses-retrenchment-process-affecting-22000-workers","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/862571\/pick-n-pay-pauses-retrenchment-process-affecting-22000-workers\/","title":{"rendered":"Pick n Pay pauses retrenchment process affecting 22,000 workers"},"content":{"rendered":"\n<p>The Minister of Employment and Labour, Nomakhosazana Meth, has intervened in Pick n Pay&#8217;s planned retrenchment process affecting 22,000 employees, with the current CCMA process halted.<\/p>\n\n\n\n<p>The retailer submitted a Section 189 notice on 4 May 2026, commencing a 60-day consultation process towards the retrenchments. <\/p>\n\n\n\n<p>The process was aimed at improving flexibility and operational efficiency within the group. <\/p>\n\n\n\n<p>The retailer noted at the time that its current labour arrangements are above market norms and not in line with contemporary shopping trends.<\/p>\n\n\n\n<p>This included minimum guaranteed hours, inflexible scheduling practices, and certain benefits and allowances.<\/p>\n\n\n\n<p>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. <\/p>\n\n\n\n<p>This has created a major mismatch between customers and staff, it said.<\/p>\n\n\n\n<p>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&nbsp;<a href=\"https:\/\/businesstech.co.za\/news\/business\/861345\/another-loss-for-pick-n-pay\/\">total comprehensive loss of R185 million<\/a>.<\/p>\n\n\n\n<p>The retailer said it was not looking to cut jobs through the process and was open to alternatives that would avoid the <a href=\"https:\/\/businesstech.co.za\/news\/business\/859030\/good-news-for-people-who-shop-at-pick-n-pay\/\">retrenchment of affected employees<\/a> and ensure jobs are saved.<\/p>\n\n\n\n<p>The Department of Employment and Labour has now stepped in, after organised labour and Pick n Pay CEO Sean Summershad called for the Minister&#8217;s intervention in the matter.<\/p>\n\n\n\n<p>The DEL said that the Labour Relations Act 66 of 1995 allows employers to dismiss employees based on their operational requirements.<\/p>\n\n\n\n<p>Meth, under the expanded mandate to preserve jobs, met with Pick&#8217;n Pay&#8217;s top executives, including Summers, as well as leaders of major worker unions.<\/p>\n\n\n\n<p>This included the Congress of South African Trade Unions (COSATU) and the South African Commercial, Catering and Allied Workers Union (SACCAWU).<\/p>\n\n\n\n<p>The department said the intervention successfully steered the parties toward common ground, with job security and economic stability as top priorities. <\/p>\n\n\n\n<p>Following an intensive six-hour engagement, the parties have agreed to return to the bargaining table.<\/p>\n\n\n\n<p>\u201cI want to highly commend the leadership of Pick n Pay, COSATU and SACCAWU for their maturity, patriotism and willingness to find each other,&#8221; said Meth.<\/p>\n\n\n\n<p>&#8220;By agreeing to actively look for alternative, sustainable solutions through the collective bargaining negotiations, it is a positive step&nbsp;for&nbsp;workers,&nbsp;the&nbsp;retail&nbsp;sector&nbsp;and&nbsp;South&nbsp;Africans&nbsp;in&nbsp;general.&#8221; <\/p>\n\n\n\n<p>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. <\/p>\n\n\n\n<p>The parties have also agreed to handle the discussions with the utmost care and sensitivity. <\/p>\n\n\n\n<p>\u201cA meeting was held yesterday with the identified parties,\u00a0and our engagements continue,&#8221; Pick n Pay told BusinessTech. The group did not have further comment. <\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pick n Pay has halted its retrechment process following a meeting with government employees and union officials. <\/p>\n","protected":false},"author":95,"featured_media":856824,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[4444,4067],"class_list":["post-862571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-department-of-labour","tag-pick-n-pay"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/862571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=862571"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/862571\/revisions"}],"predecessor-version":[{"id":862601,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/862571\/revisions\/862601"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/856824"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=862571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=862571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=862571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}