The planned retrenchment process at Pick n Pay, which could affect approximately 22,000 employees, has been placed on hold following intervention by Employment and Labour Minister Nomakhosazana Meth.

The retailer initiated the process on 4 May 2026 by issuing a Section 189 notice, triggering a 60-day consultation period on proposed workforce restructuring measures.

At the time, Pick n Pay said the review was intended to improve operational efficiency and provide greater flexibility across its stores. The company argued that several of its labour practices no longer reflect current retail trading patterns and are more costly than industry norms.

Among the issues highlighted were guaranteed minimum working hours, rigid staff scheduling arrangements, and various employee benefits and allowances.

According to the retailer, a significant challenge is that many experienced store employees work primarily during weekdays, while customer traffic is highest on Fridays, Saturdays and Sundays. The company said this imbalance has affected store operations and needs to be addressed as part of efforts to restore profitability and strengthen the business against future challenges.

Pick n Pay recently reported a total comprehensive loss of R185 million but maintained that the consultation process was not aimed at reducing headcount. Instead, the retailer said it remained willing to consider alternative proposals that could preserve jobs.

The Department of Employment and Labour has now stepped into the dispute after organised labour and Pick n Pay chief executive Sean Summers requested ministerial involvement.

While the Labour Relations Act permits retrenchments based on operational requirements, Meth used her expanded mandate focused on job preservation to convene discussions between Pick n Pay executives and labour representatives.

The talks included leaders from the Congress of South African Trade Unions and the South African Commercial, Catering and Allied Workers Union.

The department said the discussions helped all parties move closer to a shared position, with protecting jobs and maintaining economic stability identified as key objectives.

Following a six-hour meeting, stakeholders agreed to resume negotiations and continue exploring alternatives through collective bargaining structures.

Meth welcomed the outcome, praising Pick n Pay, COSATU and SACCAWU for their willingness to engage constructively and seek common ground.

She said the decision to pursue alternative and sustainable solutions through further negotiations represents a positive development for employees, the retail industry and the broader South African economy.

According to the department, negotiations remain at a sensitive stage, but there is optimism that a workable solution can be found. The suspension of the CCMA process was described as a significant breakthrough, with all parties agreeing to approach future discussions carefully and responsibly.

Whatsapp