by Dev_SACCAWU | Labour Market News
According to trade unions, the retailer is considering reducing working hours and cutting some benefits, such as the 13th cheque.
Retrenchments are not completely off the table. Picture: iStock
Pick n Pay has reiterated that its aim with the S189 consultation process is not to retrench employees, but a “direct response to operating losses incurred”.
This follows after the Labour Court reserved its judgment on Wednesday in the application by the South African Commercial, Catering and Allied Workers Union (Saccawu) to halt the retailer from proceeding with the S189 consultation process.
A S189 consultation process begins when the employer issues a written notice inviting the affected employees (or their union representatives) to consult. The notice must disclose the reasons for the proposed retrenchment, alternatives to dismissal, and the number of employees affected, among others.
Is Pick n Pay looking at cutting jobs?
The retailer told The Citizen it remains “confident in our legal position and have entered the S189 consultation process as a business imperative, in direct response to operating losses incurred”.
“Our aim remains not to lose jobs.
“We are committed to the formal CCMA facilitation process which continues through July, with our ultimate goal to secure a much more competitive and appropriate store labour model that allows for our company to grow, prosper and create job opportunities over the long-term.”
Pick n Pay previously said it is entering the S189 consultation process with the aim of returning to profitability by restructuring staff’s salary packages and working conditions. It is understood that the retailer is looking to reduce salaries and other benefits.
Saccawu attempts to stop Pick n Pay
The Labour Court heard the application brought by Saccawu on Wednesday. This is as the union believes the consultation process will see the retrenchment of at least 22 000 workers.
Spokesperson for the Congress of South African Trade Unions (Cosatu), Zanele Sabela, said the application is necessary as the unions will not allow Pick n Pay to “use the threat of retrenchment to force workers to accept inferior conditions of employment.”
“From the start, Saccawu made it clear that it would not allow the retailer to roll back workers’ conditions of employment won over decades of collective bargaining.
“The union remains steadfast in defending workers against attempts to erode guaranteed working hours, take away their 13th cheque, do away with Sunday premiums, withdraw transport for late-shift workers, and cancel longstanding collective agreements.”
Minister’s intervention
Employment and Labour Minister Nomakhosazana Meth previously met with Pick n Pay executives and Cosatu to explore alternatives to retrenchments and avoid job cuts.
The union thought that after this engagement the S189 consultation process would be halted. However, that was not the case.
Cosatu said, despite the minister’s intervention, the retailer “insists on continuing with the retrenchments that will devastate the livelihoods of thousands of workers and their families.”
Pick n Pay confirmed the meeting to The Citizen, but added: “engagements continue“.
Retailer freezes management salaries
Saccawu previously accused Pick n Pay of sacrificing workers to save the business, rather than cutting the fat paycheques executives receive.
However, CEO Sean Summers said the retailer had already cut management’s salaries as part of its turnaround strategy. He was commenting on the retailer’s financial performance for the 52 weeks ended 1 March 2026.
“To be abundantly clear, we have already taken action on our management and support office staff costs, with a salary freeze, alongside the implementation of a future-fit structure that has seen a significant reduction in headcount.
“The bulk of our labour cost is incurred in stores and operations, and it is now time to deal with this remaining major cost block.”
He assured the S189 consultation process is about ensuring the business’s long-term viability and protecting future employment, and not reducing the workforce.
by Dev_SACCAWU | Labour Market News
FILE | A man walks past a branch of African Bank in Cape Town.
Image Credits : Reuters
The Congress of South African Trade Unions (COSATU) says it will oppose African Bank’s proposed retrenchments, warning that South Africa cannot afford to lose more jobs.
This after the bank announced that it has begun formal consultations with finance union, South African Society of Bank Officials (SASBO).
It says the consultations are over a restructuring process that could see the closure of 90 branches and the cutting of 1 200 jobs.
The bank its aim is to cut costs and improve operational efficiency.
The labour federation’s national spokesperson, Zanele Sabela says, “I mean we all know our unemployment rate is sitting at 43.7% currently. We just can’t lose any jobs and so as COSATU, we will do our utmost to support our affiliates, SASBO to make sure that those jobs are saved. On average, one job supports about seven people and so when you look at that, you see how devastating it will be to lose those 1 200 jobs and therefore, we cannot do that. We will not allow that happen.”
PODCAST | COSATU opposes African Bank retrenchment plans:
Source: https://www.sabcnews.com/sabcnews/cosatu-to-oppose-african-banks-proposed-retrenchments/
by Dev_SACCAWU | Labour Market News
Cosatu has slammed employers who fail to pay over workers’ pension fund contributions, putting about 590 000 workers’ lives at risk. (Supplied)
Union federation warns against workers falling into poverty retirement
THE Congress of South African Trade Unions (Cosatu) has slammed employers who fail to pay over workers’ pension fund contributions, saying the growing crisis puts about 590 000 workers’ retirement savings at risk.
According to the latest Financial Sector Conduct Authority report, the number of employers, who have defaulted on pension fund contributions, has climbed to 16 556 by the end of February 2026, up from 15 521 recorded in September 2025.
The total amount owed has also ballooned by R1,04 billion to R8,33 billion, with late payment interest now making up 43,5% of the total arrears.
Cosatu said despite recoveries of R1,01 billion since the FSCA first started reporting on the matter in June 2022, the outstanding amount remains unacceptably high.
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“The total arrears are still far too high and risk plunging more than half-a-million workers into poverty retirement.
“More than an injustice, this is a crime against workers whose sweat of the brow is toyed with by these unscrupulous employers,” said the union federation.
Cosatu expressed particular concern over municipalities, saying they deducted R1,7 billion from workers’ salaries but failed to transfer the money to pension funds.
The federation said municipal workers have also been forced to endure unpaid salaries for months while their pension contributions remain in arrears.
“When pension fund contributions are in arrears, workers’ death and disability benefits become void with devastating consequences for the workers and their families,” it said.
The federation reminded employers that failure to pay pension fund contributions is a violation of Section 13A of the Pension Funds Act, which requires contributions to be paid within seven days after month-end.
Those not complying are breaking the law and if prosecuted, will be liable for a fine and can even be jailed. They are thieves, plain and simple
— Cosatu
While welcoming measures by National Treasury and labour inspectors to improve compliance, Cosatu said stronger action is needed.
“This crisis will, however, not end until delinquent employers are charged and prosecuted for the theft, fraud and corruption that this mass looting is.
“Cosatu will engage unions of affected workers to begin laying charges with the police,” said the federation.
It added that it will intensify efforts to report defaulting employers and ensure all outstanding pension contributions, including interest, are recovered.
Source: https://www.snl24.com/news/cosatu-fumes-as-pension-fund-debt-puts-workers-at-risk-20260717/
by Dev_SACCAWU | Labour Market News
The Department of Employment and Labour has committed to strengthening collaboration and expanding outreach programmes to improve ex-mine workers’ access to social security and compensation benefits, including an estimated R10 billion in outstanding claims.
Acting Director-General Jacky Molisane said the department will intensify efforts to improve access to services provided by the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF), while working closely with partners to ensure former mine workers receive the dignity, support and benefits they deserve.
“The Department of Employment and Labour, through the Unemployment Insurance Fund and the Compensation Fund, continues to implement interventions aimed at improving access to social protection and compensation benefits for workers, including former mine workers,” Molisane said.
Molisane was addressing an ex-mineworkers’ stakeholder session held at Port St Johns, Eastern Cape. The meeting sought to resolve outstanding issues relating to compensation claims and access to social security benefits for former mine workers.
The session brought together the Department of Employment and Labour, the Eastern Cape provincial government led by Premier Oscar Mabuyane, the Compensation Fund, Rand Mutual Assurance, the National Department of Health, the South African Medical Association, and various stakeholders.
The initiative forms part of a coordinated intervention to address historical injustices experienced by ex-mine workers. Discussions focused on strengthening coordination and mobilising resources for the Ex-Mineworkers Intervention Programme.
The stakeholders’ session concluded a week-long multidisciplinary government outreach campaign that brought services directly to communities in Port St Johns and surrounding areas.
Services included workplace inspections, processing UIF and Compensation Fund claims for occupational injuries and diseases, career counselling and the registration of workseekers on the Employment Services of South Africa (ESSA) system.
The Medical Bureau for Occupational Diseases (MBOD) and the Compensation Commissioner for Occupational Diseases (CCOD), Barry Kistnasamy, said an estimated R10 billion in compensation claims remains unpaid to ex-mine workers nationwide.
The Eastern Cape Premier called for improved information sharing. “I cannot accept excuses that databases cannot be accessed when we are trying to alleviate the suffering of our people. It is unfortunate that the rewards of workers’ efforts have not followed them home,” the Premier said.
Molisane acknowledged the contribution of the Office of the Premier, Rand Mutual Assurance, the Thubelisha Project, organised labour, community structures, and all stakeholders for their continued efforts to address challenges facing ex-mine workers.
She reiterated that the Compensation Fund remains a critical pillar in supporting workers who suffered occupational injuries and diseases in the course of their employment, while the UIF continues to provide unemployment, illness, maternity, dependants’ and other qualifying benefits.
“The fund’s outreach programmes have been instrumental in taking services closer to communities and ensuring vulnerable citizens are not excluded from accessing their rights,” she said.
Despite progress, Molisane said significant challenges remain, including incomplete documentation, historical employment records, benefit tracing and limited access to services.
“These challenges require a collective response from government, social partners and community stakeholders,” she said.
According to Molisane, the Eastern Cape has contributed approximately 370 000 ex-mine workers to the national total of about one million since 1965, making it one of the provinces most affected by the legacy of labour migration.
She said many former mine workers had been exposed to occupational hazards such as silica dust, resulting in high rates of tuberculosis, silicosis, coal workers’ pneumoconiosis (black lung disease), other occupational lung diseases, workplace injuries and fatalities.
Since 2019, the UIF has paid R16.7 million in benefits to 5 625 former mine workers, Molisane said. – SAnews.gov.za
Source: https://www.sanews.gov.za/south-africa/labour-expands-outreach-unpaid-ex-mineworkers
by Dev_SACCAWU | Labour Market News
Betrayed workers demand answers as savings disappear
Picture: iStock
After 40 years of service to a Mpumalanga municipality, a 60‑year‑old line manager now fears retirement may bring ruin instead of deserved rest.
His worry is simple but devastating: the council has failed to pay over millions in employer and employee pension contributions, leaving him – and thousands of other municipal workers – uncertain of their futures.
Municipalities owe R1.7 billion in unpaid pensions
Finance Minister Enoch Godongwana recently confirmed municipalities nationwide have withheld more than R1.7 billion in deductions, exposing workers to a bleak retirement and raising urgent questions about accountability, governance and justice.
The National Treasury has recently refused to release the July equitable share transfers allocated to 69 municipalities after they failed to comply with the Municipal Finance Management Act and other related laws.
Retirement contributions disappeared
The municipal employee said he believed thousands of rands had been deducted from his salary over two years and not paid over to the retirement fund. He was not sure whether the employer contributions had similarly disappeared.
“Most of my former colleagues who already retired did not get enough money and they are challenging the municipality to have the matter investigated.
The employee said he approached the pension fund adjudicator for assistance, and the municipality was requested to submit the supporting documents detailing why the money was not transferred.
“It’s about a month now; we are still waiting for them to give details of why the money was not transferred,” he said. “I am one of the employees who used to work for the apartheid government, and we were told that the money would be transferred to the democratic government. But by the look of things, something went wrong because some of my former colleagues did not receive what they were due.
“Before retiring, I need to make sure that the issue of the missed contributions for two years is sorted out and also double-check whether the municipality would be able to pay me all that is due to me.”
A 72-year-old granny, who had worked at the financial department of the government from 1985 until 2019, said after retiring, she was only paid R600 000 and a monthly stipend of about R10 000.
“Most of the former longest-serving employees only received less than R1 million, mostly about R500 000,” she said. “We are not happy, and some of us reported the matter to our former unions to investigate.”
One of the secretaries at the same municipality said she has only 10 years of service, but her pension fund is about R700 000.
“If I am at that figure now, why does a person who started working here when I was only three years old receive the same amount as mine when they retire?”
Call for municipal managers to be charged
Cosatu parliamentary coordinator Matthew Parks said what happened to the workers was an abomination.
Parks said municipal managers were guilty of committing serious criminal offences and must be charged and held personally financially liable.
“Until we begin charging managers and employers for stealing workers’ pension funds, this mass theft will continue unabated,” he said. “Cosatu remains extremely concerned by the lack of a comprehensive package of interventions to stabilise and rebuild the alarming number of financially distressed municipalities.”
Parks said the federation notes tentative progress with 42 delinquent municipalities responding to National Treasury’s temporary withholding of their equitable share grants and the staggered release of these payments to them.
“The absence of plans to respond to Treasury’s call for actions from the remaining 17 municipalities is staggering,” he said. “Equally worrying is the seemingly pedestrian approach from the South African Local Government Association to the deterioration of municipal governance and even the collapse of basic services in countless municipalities under its lacklustre watch.”
He added that Cosatu appreciated the need to instil financial discipline in these errant municipalities, in particular to ensure that they honour their payment obligations to workers’ salaries and pension funds, Eskom, water boards and other third parties.
“We are, however, deeply worried about the unintended potential consequences of withholding payments to municipalities, with 21 of them so financially cash-strapped that this action may cause some basic services to grind to a halt and leave many municipal workers unpaid once again.”
