“The objective of the process is not to reduce headcount, rather to improve labour flexibility and cost sustainability, while retaining jobs wherever possible and creating the conditions necessary for sustainable employment growth over the longer term.”
Pick n Pay said the consultation focuses on addressing labour practice that have become increasingly inflexible and costly over time and are no longer aligned with prevailing retail market practice.
The retailer added that the consultation process is to address the aforementioned matters and consider alternative options. It emphasised that the consultation does not represent a “predetermined outcome”.
“The process applies to specific store-based employees within the Non-Management Bargaining Unit and excludes head office employees and management structures which have already been part of a process over the last 24 months with a wage and salary freeze combined with a reduction in numbers due to restructuring.”
The union representing most of the retailer’s workers expressed dissatisfaction with how Pick n Pay is restructuring and handling consultations.
“The S189A CCMA notices issued to employees effectively give them two undesirable choices, one is to accept retrenchments, or as an alternative to retrenchments, to accept the downward variation of their negotiated conditions of employment, which includes their agreement to cancel all their collective agreements on workers’ rights and protections,” said SACCAWU.
“Sean Summers’ decision to refer a dispute to the CCMA, before their proposals were tabled to SACCAWU, is indicative of the bad faith with which they are embarking on this process. Abusing the CCMA’s resources before SACCAWU had had sight of their proposals should be condemned in the strongest terms.”
According to the union, Pick n Pay is proposing the following changes to employees’ packages and terms of employment:
The union has raised concerns about why the retailer doesn’t look at restructuring management’s pay and working conditions, instead of looking at the bottom.
“While Pick n Pay singles out the employees’ working conditions in the Non-Management Bargaining Unit wage bill, they conveniently do not show how much, as a percentage of the company’s wage bill, is allocated towards its executives and management structure,” said SACCAWU.
“It must be noted that Pick n Pay’s desperate strategy to attack the gains made by its workers will have the unintended consequences of deepening the economic crisis that families of workers are already facing.
In addition, the union added that employees cannot continue to bear the burden of corporate restructuring and business challenges, while executives and shareholders are protected.
“Pick n Pay is disingenuous by laying the blame or the company’s financial and operational difficulties at the feet of its employees, and their purported high salaries, out of sync working conditions, and lack of flexibility,” said SACCAWU.
“The express purpose for agreeing a 60% Variable Time and 40% Full Time employment ratio was to ensure the company has a more flexible workforce.”
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CEOs to be blamed
The union has also blamed two of the retailer’s former CEOs for the dire financial state Pick n Pay finds itself in.
“Pick n Pay also neglects to admit that its previous two CEO appointments have driven the company from a status of healthy profitability and market share into the shell of its former glory it is experiencing.
“Indicative of this is the wastage the company has suffered through Peter Boone, its former CEO’s QualiSave strategy, which was undone by Sean Summers immediately upon his appointment.”
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Source: https://www.citizen.co.za/business/pick-n-pay-saccawu-retrenchments-employees/
by Dev_SACCAWU | Labour Market News
Data shows that nearly half of graduates are unemployed or underemployed within their first year of graduating. Picture: (123RF)
Young people must urgently be equipped with skills needed to enter the world of work
This week’s unemployment report from the national statistics agency would have made disheartening reading for the hundreds of thousands of young South Africans finishing their studies at the country’s many institutions of higher learning.
For many of them, the end of the year will be the start of a bleak process of knocking on endless doors looking for their first job and having those doors shut in their faces, partly because their newly minted degrees have not equipped them with the skills employers are increasingly looking for.
The unemployment data from Stats SA was certainly beyond depressing, to quote Cosatu’s Matthew Parks. His characterisation of the crisis as a ticking time bomb was spot on.
Unemployment has surged to 32.7% from 31.4% and is even higher at 45.8% among young people aged 15 to 34 years.
Only 16.8-million people have jobs in a country with an adult population of about 41-million. Nearly 4-million people were discouraged from looking for jobs in the first quarter of the year. These are bleak numbers by any definition.
In his state of the nation address in June, President Cyril Ramaphosa made much of the fact that the Youth Employment Service, a partnership between business and government, placed more than 200,000 young people in yearlong work experience opportunities.
It’s a commendable initiative, certainly not to be sniffed at, but what about the millions of other young people stuck at home with no prospects? We need a more coherent programme of action that equips our young people with the skills they need to enter the world of work, instead of piecemeal solutions.
A good starting point is to address the mismatch between the degrees South African universities are offering and the practical skills employers are actually looking for.
As a case in point, education expert Riaz Moola recently highlighted how, in an increasingly digitalised world, thousands of young South Africans looking for their first job are at a disadvantage because they lack the basic AI skills increasing in demand in the workplace.
As Moola argued, AI is not replacing people, as is the common refrain, but rather amplifying those who know how to use it. We should therefore be moving swiftly to ensure that basic AI skills are integrated into the curriculums of all South African schools and tertiary institutions, leaving no single child behind.
Sadly, however, no matter how well we train our young people, they will still struggle to find jobs in an economy growing at just 1.1%, a dampener for business investment.
We need to get serious about removing the structural impediments that stand in the way of South Africa getting to the 3%-5% expansion needed to get its people working.
And that means rooting out corruption, reducing bureaucracy, improving infrastructure and public services, expanding private-sector participation, improving safety and encouraging investment.
Mass unemployment should not be normalised and any government serious about dignity and opportunity for its citizens must prioritise job creation and reform above all else.
Source: https://www.businessday.co.za/opinion/2026-05-15-editorial-we-need-to-defuse-the-unemployment-time-bomb/
by Dev_SACCAWU | Labour Market News
The Congress of South African Trade Unions (COSATU) in Mpumalanga expresses its profound disappointment, anger, and disgust at the alarming levels of unemployment and retrenchments revealed by the recent labour force survey. The report paints a painful picture of the socio-economic crisis confronting workers and communities across our province, with Mpumalanga ranking amongst the hardest-hit provinces, having recorded more than 40 000 job losses during the period under review.
These figures are not just statistics; they represent shattered livelihoods, struggling families, growing poverty, rising inequality, and increasing hopelessness amongst the working class and the youth. The continued loss of jobs in both the public and private sectors is unacceptable and requires urgent intervention from all stakeholders.
COSATU Mpumalanga calls upon government, business, labour, and all social partners to urgently convene and develop concrete, practical, and implementable solutions aimed at preventing further job losses and rebuilding the economy in a manner that prioritises workers and communities.
We specifically call for:
- The urgent creation of decent and sustainable jobs across all sectors of the economy.
- The expansion of on-the-job training programmes, internships, apprenticeships, and youth employment initiatives.
- The immediate filling of all vacant substantive posts in government departments, municipalities, state-owned entities, and public institutions.
- Increased investment in local economic development and industrialisation initiatives that can absorb unemployed youth and workers.
- Stronger protection of workers against unfair retrenchments and exploitative labour practices.
- The elimination of outsourcing and the abuse of subcontracting systems that undermine workers’ rights, wages, job security, and dignity.
COSATU remains firm in its belief that the economy must serve the people and not profits alone. We therefore advocate for a developmental, ethical, and interventionist state capable of driving inclusive growth, job creation, social justice, and a better life for all.
We further urge both government and the private sector to place the interests of workers and communities at the centre of economic planning and decision-making processes. South Africa cannot overcome poverty, crime, and inequality while unemployment continues to rise at such devastating levels.
COSATU Mpumalanga will continue to engage all relevant stakeholders and mobilise workers and communities in defence of jobs, decent work, and economic justice.
Issued by COSATU Mpumalanga
Thabo Mokoena (Provincial Secretary)
Mobile: 073 750 2041
Source: https://mediadon.co.za/cosatu-mpumalanga-expresses-deep-concern-over-rising-unemployment-and-retrenchments/
by Dev_SACCAWU | Labour Market News
Pick n Pay has come under fire from one of its biggest unions after the retailer announced adjustments to its store labour model.
While Pick n Pay has stressed that the adjustments aim to save jobs, the South African Commercial, Catering and Allied Workers Union (SACCAWU) argued that this comes at a cost to the most vulnerable employees.
SACCAWU believes the retailer is laying the blame for the company’s financial and operational difficulties at the feet of its employees.
On Monday, 4 May 2026, Pick n Pay announced that it had started a Section 189A consultation process with SACCAWU regarding targeted adjustments affecting certain store-based employees.
Pick n Pay said the process is focused on improving operational efficiency and aligning labour practices with changing customer shopping trends and broader market norms.
According to the retailer, aspects of its current labour arrangements are no longer sustainable or competitive.
“These include minimum guaranteed hours, inflexible scheduling practices, and certain benefits and allowances,” the company said.
However, Pick n Pay stressed that the consultation process is “not intended to result in a permanent reduction in overall job numbers” and insisted it is committed to finding alternatives that will avoid retrenchments where possible.
“The store labour model reset does not impact the entire business. This process applies to specific store-based employees,” the retailer said.
It added that the proposed changes are aimed at Non-Management Bargaining Unit (NMBU) employees and exclude head office staff and management structures.
Pick n Pay argued that the changes are necessary to make the business “more responsive and competitive in a rapidly changing retail environment” and to better align with competitors.
However, SACCAWU has strongly condemned the proposals, accusing the retailer of placing the burden of its financial and operational troubles on ordinary workers.
The union warned that approximately 22,000 employees could be affected and described the process as an attack on workers’ rights and negotiated conditions of employment.
Workers forced to choose between two undesirable options
According to SACCAWU, employees are effectively being forced to choose between retrenchment and accepting significantly reduced working conditions and benefits.
Among the proposed changes highlighted by SACCAWU are reductions in working hours from 196 to 176 hours per month, which the union claims would amount to roughly R2,000 less in wages per employee each month.
The union also alleged that Pick n Pay wants to remove transport for employees working late or night shifts, and withdraw the negotiated 13th cheque for NMBU staff.
The proposals also include scrapping Sunday premium pay by treating Sundays as normal working days, and removing benefits for part-time workers.
SACCAWU further accused Pick n Pay of trying to bypass established internal negotiation structures by referring the dispute directly to the Commission for Conciliation, Mediation and Arbitration (CCMA).
“The decision to refer a dispute to the CCMA, before their proposals were tabled to SACCAWU, is indicative of the bad faith with which they are embarking on this process,” the union said.
The union argued that Pick n Pay’s problems stem from poor executive decisions rather than employee costs, pointing to the failed QualiSave strategy introduced under former CEO Peter Boone.
“Pick n Pay is disingenuous by laying the blame for the company’s financial and operational difficulties at the feet of its employees,” SACCAWU said.
The union also criticised what it described as a “large-scale restructuring and retrenchment strategy” that protects executive salaries while worsening poverty and unemployment among workers.
SACCAWU warned that it is prepared to oppose any unfair retrenchments or unilateral changes to employment conditions through legal and organisational action.
“If further provoked, we are organisationally ready to mobilise and campaign to rally our members and communities to unleash industrial and mass action,” the union said.
Source: https://businesstech.co.za/news/business/860358/pick-n-pay-under-fire/
by Dev_SACCAWU | Labour Market News
JOHANNESBURG – Retail giant Pick n Pay has begun formal consultations with unions as part of efforts to turn around its struggling supermarket business.
The process, under Section 189A of the Labour Relations Act, will focus on changes to store-level labour practices, including shift flexibility and employee benefits.
The company said the goal is not to cut jobs, but to reduce rising labour costs and align working conditions with broader retail market standards.
Pick n Pay added that no final decisions have been made, with the consultation aimed at exploring alternatives and securing long-term sustainability while preserving jobs where possible.
Source: https://www.enca.com/business-top-stories/pick-n-pay-starts-labour-talks-cut-costs
