South Africa’s major labour federations have warned against rising xenophobic sentiments and attacks on migrants, insisting that foreign nationals should not be blamed for the country’s worsening economic challenges. In a joint statement issued through the National Economic Development and Labour Council (NEDLAC), the Congress of South African Trade Unions (COSATU), the Federation of Unions […]
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The ruling is likely to have broader implications for service station operators, convenience store franchises and bargaining councils, particularly where multiple businesses operate from the same premises but maintain separate operational structures. Image: Supplied
The Labour Court has overturned a bargaining council demarcation ruling that placed employees working at a Pick n Pay Express convenience store located on a BP service station property under the jurisdiction of the Motor Industry Bargaining Council (MIBCO), finding that the store operates as a separate business and is not an ancillary activity of the filling station.
In a judgment delivered on Monday, Judge Robert Lagrange ruled in favour of Merriman BP Service Station, setting aside an earlier arbitration award that had determined that employees at the convenience store fell within MIBCO’s registered scope.
Merriman BP Service Station operates both a BP-branded fuel station and a Pick n Pay Express store in Stellenbosch. While both businesses are owned by the same company and operate from the same premises, the employer argued that they function independently and should not be treated as a single operation for bargaining council purposes.
The ruling is likely to have broader implications for service station operators, convenience store franchises and bargaining councils, particularly where multiple businesses operate from the same premises but maintain separate operational structures.
The case centred on the interpretation of MIBCO’s scope of registration, particularly whether a convenience store operating on the premises of a fuel station could be regarded as an “ancillary activity” of the filling station and therefore subject to the bargaining council’s jurisdiction.
The Motor Industry Bargaining Council had previously maintained that the convenience store fell within its scope because it formed part of the service station environment. An arbitrator agreed with that interpretation in a 2020 demarcation ruling.
However, the Labour Court in Cape Town found that the arbitrator committed material errors in interpreting the relevant provisions governing MIBCO’s scope.
Judge Lagrange noted that the key question was whether the activities of the Pick n Pay Express store were genuinely ancillary to the service station business or whether they operated as a separate enterprise.
The court found that there was insufficient evidence to support the conclusion that the store formed part of the filling station’s operational activities.
“The lack of anything more than being on the same premises and owned by the same company, without evidence of any operational integration, is not enough to bring the Express store within the scope of the ancillary activity of the filling station,” the judgment stated.
The court emphasised that although the two businesses may benefit from being located together and share a customer base, that relationship alone does not make one an ancillary activity of the other.
Judge Lagrange said the evidence demonstrated that the fuel station and convenience store were operationally independent, each running its own business activities despite common ownership.
“The fact that they are complementary to each other does not mean the Express store is subsumed as an incidental or ancillary activity of the filling station business,” he said.
The judgment also criticised the arbitrator’s reasoning, describing the analysis as superficial and based on a flawed interpretation of the bargaining council’s scope provisions.
According to the court, the arbitrator incorrectly focused on whether the convenience store supported the filling station rather than determining whether the store’s activities actually formed part of the service station’s business operations.
Had the correct legal interpretation been applied, the court found that the arbitrator would have been compelled to conclude that the convenience store operated independently and therefore fell outside MIBCO’s jurisdiction.
Judge Lagrange noted that there may be circumstances where a convenience store can be considered an ancillary activity of a filling station, particularly where the operations are closely integrated. However, he found that such circumstances did not exist in the Merriman case.
Given that the court was in as good a position as the arbitrator to decide the matter based on the evidence presented, it elected not only to set aside the award but also to substitute it with its own ruling.
The court ordered that the November 2020 demarcation award be reviewed and set aside and replaced it with a finding that employees engaged in the Pick n Pay Express store do not fall within the scope of the Motor Industry Bargaining Council.
No order as to costs was made, with the court finding that both parties had a legitimate interest in obtaining legal certainty on the issue.
Legal Aid South Africa has suspended remote working arrangements, cancelled leave and ordered non-striking employees back to offices as it prepares for potential disruption from industrial action by members of the South African Legal Workers Union (SALAWU). Image: Nomonde Zondi
Legal Aid South Africa has suspended remote working arrangements, cancelled leave and ordered non-striking employees back to offices as it prepares for potential disruption from industrial action by members of the South African Legal Workers Union (SALAWU).
Documents in IOL’s possession show the organisation has activated a wide-ranging contingency plan that includes additional attendance monitoring, the suspension of flexible work arrangements and the revocation of some previously approved leave.
The measures come as SALAWU has said there will be protected strike action, which will take place on 17 and 18 June. The strike follows months of failed attempts to resolve disputes through the Commission for Conciliation, Mediation and Arbitration.
While the union has publicly described the action as a two-day strike, an internal contingency circular signed by chief executive officer Mantiti Kola states that industrial action will commence on 17 June and “will proceed indefinitely”.
Legal Aid South Africa provides legal representation and legal services to people who cannot afford private legal assistance, including in criminal, civil and land matters.
Disruptive action
The circular further warns that the strike “has the potential to disrupt Legal Aid SA’s delivery of services to clients and other stakeholders”.
The industrial action stems from a dispute over Legal Aid South Africa’s retirement policy. SALAWU has argued that employees are being forced to retire at 60 instead of 65 and has broadened its grievances to include staffing levels, workloads, salary benchmarking, employee benefits and morale.
Legal Aid South Africa, however, sought to reassure clients and stakeholders that services would continue. In a statement issued ahead of the strike, the organisation said it had activated business continuity measures.
“While Legal Aid SA anticipates that some employees may participate in the industrial action, the organisation has activated appropriate business continuity and service continuity measures to minimise disruption to services. These measures are intended to ensure that clients continue to receive legal assistance and representation,” it said.
IOL has a copy of a Legal Aid document indicating that strike action could go on indefinitely. Image: Legal Aid internal document
Respecting the constitution
Legal Aid South Africa added that it respected “the constitutional rights of employees to participate in this lawful and protected industrial action” while remaining committed to safeguarding access to justice for vulnerable and indigent people.
The organisation also officially acknowledged that SALAWU had “raised concerns relating to the retirement age provision contained in the organisation’s Terms and Conditions of Employment Policy”.
However, the contingency plan reveals the extent of preparations underway behind the scenes. Under the plan, employees who decide not to participate in the strike needed to have signed a non-participation register by 10am on 15 June.
“Any employee who fails to complete the non-participation register within the prescribed period will be considered to be participating in the industrial action,” the staff circular said.
In addition to the organisation’s existing biometric attendance system, non-striking employees will also be required to sign a manual attendance register three times a day. The circular states that employees must sign the register before or at 08:00, between 13:00 and 14:00 and again at or after 16:00.
You can’t be flexible
Flexible working arrangements have also been suspended.
“To ensure better co-ordination of the available resources in every office, the Flexible Work Arrangement Policy is suspended, effective Monday, 15 June 2026, until further notice,” the circular states.
Employees currently working from home due to office space constraints have been instructed to report to local, satellite or court-based offices. “The Head of Office/Provincial Executive should determine the office where the employee will report,” the contingency plan stated.
“In anticipation of staff resources being limited, no employee shall be allowed to take annual leave for the duration of the strike, unless exceptional circumstances exist that warrant the taking of annual leave,” the circular states.
Previously approved leave falling within the strike period has also been revoked unless alternative arrangements are approved by management.
Employees participating in the industrial action have further been instructed to return all files to their “line managers or delegated officials”.
Andries Nel, deputy minister of Justice and Constitutional Development, during a Portfolio Committee on Justice and Constitutional Development 6 May 2026 meeting discussing Legal Aid. Image: YouTube screenshot
Staffing concerns
The contingency measures come against a backdrop of broader concerns about staffing and capacity within the organisation.
During a meeting of Parliament’s Portfolio Committee on Justice and Constitutional Development last month, Legal Aid South Africa warned lawmakers that budget constraints were affecting its ability to fill vacancies and maintain staffing levels.
The issue has featured prominently in SALAWU’s criticism of the organisation.
The union has argued that frozen vacancies have resulted in excessive workloads and chronic understaffing, while pointing out that other institutions within the justice cluster continue to fill positions.
It has also criticised delays in salary benchmarking, reductions in performance incentives and what it describes as a deterioration in employee benefits and morale.
Making staff poorer?
The retirement-age dispute remains at the centre of the industrial action.
According to SALAWU, employees expected the retirement age to revert to 65 and have argued that retirement at 60 places employees at a financial disadvantage by reducing future earnings and affecting retirement and medical benefits.
Five employees retired in January 2026, while a further 25 employees are expected to retire before the end of the current financial year.
Legal Aid has said the retirement age of 60 was formally approved by the board in 2018 and later approved by both the ministers of justice and finance in 2020, following consultation processes with employees.
Legal Aid’s website says it is a “top employer” for this year. Image: Legal Aid SA website
Constructive
Legal Aid South Africa said it would continue engaging with the union through established labour relations channels.
“The entity will carefully consider all matters formally presented in the memorandum and will engage constructively with the Union through the appropriate labour relations mechanisms,” it said.
The organisation added that its objective was “not simply to respond to disputes as they arise, but to continue building an environment where issues can be addressed constructively and in the best interests of both employees and the organisation”.
Legal Aid was offered an opportunity to comment on the additional information in IOL’s possession but had not done so by the time of writing.
Outgoing agriculture minister John Steenhuisen Image: GCIS
Two months into the job, and Geordin Hill-Lewis is already wielding the axe.
It is understood the new DA leader has decided to strip John Steenhuisen of the agriculture portfolio, offering him a far smaller consolation prize, deputy minister of trade, industry and competition.
According to an insider, Hill-Lewis has written to President Cyril Ramaphosa requesting a set of changes to the DA’s ministers and deputy ministers in cabinet.
The party’s federal council is being briefed on the changes on Wednesday morning.
“We will have a meeting about it this morning,” the source said.
“It should be made official after that.”
The DA is the second-biggest party in SA’s coalition government (the GNU) under Ramaphosa, and holds six ministries and six deputy ministries.
Steenhuisen led the DA for years and was central to negotiating its place in the coalition, but stepped down as party leader in April.
That followed mounting internal pressure, much of it tied to his handling of the foot-and-mouth disease crisis hitting the livestock sector.
Hill-Lewis, Cape Town mayor, took over from him.
What Hill-Lewis is said to be asking for:
Replace John Steenhuisen as agriculture minister with Willie Aucamp, currently minister of forestry, fisheries and the environment;
Move Steenhuisen into the smaller role of deputy minister of trade, industry and competition;
Move David Maynier, currently Western Cape education MEC, into Aucamp’s old post;
Shift Alexandra Abrahams from deputy trade minister to deputy minister of energy and electricity, replacing Samantha Graham-Maré, who would leave the executive entirely;
Bring Jack Bloom, the DA’s Gauteng health spokesperson, into government as deputy minister of water and sanitation, replacing Isaac Seitlholo; and
Remove Mimmy Gondwe as deputy minister of higher education and replace her with Yusuf Cassim, currently the DA’s Eastern Cape provincial chairperson.
Aucamp has reportedly already been told that, if confirmed, his first jobs would be to settle pending court cases over FMD vaccine policy and to start talks with farming groups about the outbreak.
Hill-Lewis had given Steenhuisen roughly two months after the April leadership change to show progress on agriculture before deciding whether to act.
South Africa’s biggest retailer and largest private employer, Shoprite, has blown past its targeted store openings for the year, rolling out 268 new stores in a massive R3.9 billion expansion.
The group surpassed its target of opening 223 new stores in FY 2026, having achieved higher than the target in just 11 months.
The group said the store openings are part of its strategy to grow its omnichannel retail platform, built on a significant corporate-owned store base, for future growth.
The bulk of the openings were in its core segment, which contributes the lion’s share of group sales. However, its ‘adjacent’ businesses also saw rapid growth.
The retailer opened:
48 Usave stores
41 Shoprite supermarkets
30 Checkers supermarkets
92 LiquorShops
38 Petshop Science stores
13 UNIQ clothing stores
6 others
Notably, the adjacent businesses are growing far ahead of target, with Petshop Science exceeding its planned rollout by 65%, while UNIQ clothing more than doubled its rollout plan.
Petshop Science was launched in April 2021, making Shoprite the first South African supermarket group to enter the specialist pet retail market.
In just over three years, the concept has expanded rapidly in response to growth in the local pet economy.
Uniq was launched as a standalone clothing brand in March 2023, with its first store opening at Canal Walk in Cape Town.
The brand focuses on premium everyday clothing for the family and has since rolled out across most major shopping malls in South Africa.
Other brands that have launched in Shoprite’s ‘adjacent business’ segment include Checkers Outdoor and the new LittleMe baby-focused retail concept, which launched in 2021.
The rollouts have also cemented Shoprite’s position as South Africa’s biggest private employer. The group currently employs over 170,000 people, with the new expansions adding to the figure.
Thousands of new jobs were created throughout South Africa as the group expanded its footprint across all nine provinces, it said.
Gauteng led the growth with 82 stores opening, followed by the Western Cape (48) and KwaZulu-Natal (31), which together accounted for nearly 60% of all openings during the period.
“The group’s expansion strategy is supported by significant capital investment, with R3.9 billion spent during the first half of its 2026 financial year – much of it directed towards growing and upgrading the retailer’s core South African store network,” the group said.
Shoprite opening while competitors closing
Shoprite’s rapid expansion stands in stark contrast to its main competitors in the retail space, namely SPAR Group and Pick n Pay, which have been scaling down their operations in many respects.
Pick n Pay has been running a major store reset programme over the past two years, which saw the group close non-performing stores and convert many others to other brands in the stable, like Boxer.
The group noted in May 2026 that this programme is now largely complete, but it still saw the retailer shut down 56 stores across South Africa during its 2026 financial year.
The company closed 39 company-owned stores during the financial year, although this was partly offset by 33 converted openings.
Pick n Pay Clothing continued to expand despite the broader restructuring, with store numbers increasing from 396 in March 2025 to 419 by March 2026.
The biggest reduction came in the franchised business. Pick n Pay’s franchised supermarket footprint declined sharply from 260 stores in 2025 to 211 in 2026.
The retailer also significantly reduced its franchised liquor network, closing 29 liquor stores during the year under review.
Overall, company-owned stores increased from 971 to 992 over the period, but franchised stores declined from 697 to 620. This resulted in a net closure of 56 stores nationwide.
SPAR, meanwhile, has also been in recovery mode, pulling out of international markets to rather focus on its operations back home in South Africa.
In its interim results for the six months ended 27 March 2026, published this week, the group said that it faced significant pressure.
This included three main challenges: underperformance in KwaZulu-Natal, an ineffective Black Friday campaign that failed to deliver a return on investment, and residual balance sheet clean-ups.
In terms of its store footprint, the group reported a mix of local sales and disposals, flagging impairments from underperforming operations.
However, its overall store base saw a significant reduction due to the disposal of its international operations, particularly in the UK.
