The Minister of Employment and Labour, Nomakhosazana Meth, has intervened in a bid to prevent the looming retrenchment by Pick n Pay of possibly over 22,000 workers.
In a statement on Thursday, the department said the minister convened a meeting between the parties, including Pick n Pay Group CEO, Sean Summers on Wednesday.
On 4 May, Pick n Pay submitted a Section 189 notice, commencing the 60-day consultation process towards the retrenchments.
“The Section 189 notice of the Labour Relations Act 66 of 1995 permits employers to dismiss employees based on their operational requirements and sets out the provision for the employer to consult in terms of the collective agreement,” the ministry statement said.
Department spokesperson, Thobeka Magcai, said the minister’s intervention successfully steered the parties toward common ground, prioritising job security and economic stability.
“The parties have agreed to return to the bargaining table with set timelines, following an intensive six-hour engagement session yesterday, Wednesday, 3 June.
“The meeting follows requests by both the Pick n Pay CEO and Organised Labour for the minister’s intervention in the matter,” she added.
Meanwhile, Minister Meth commended the leadership of Pick n Pay, COSATU, and SACCAWU for their maturity, patriotism, and willingness to find each other.
“By agreeing to actively look for alternative, sustainable solutions through the collective bargaining negotiations, it is a positive step for workers, the retail sector, and South Africans in general.
“Furthermore, we extend our best wishes to all parties,” she said.
The Department of Employment and Labour said talks are currently at a highly delicate stage.
“While the mood is optimistic and the halt of the CCMA process is a major milestone, all parties have agreed to handle the ongoing discussions with utmost care and sensitivity.”
In the SENS notice on 4 May, Pick n Pay said the objective of the process is not to reduce headcount, but 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.
“The consultation is focused on addressing labour practices that have become increasingly inflexible and costly over time, and which are no longer aligned with prevailing retail market practice.”
The retailer said the consultation process represents a lawful and structured mechanism to engage meaningfully on these matters, including the consideration of alternatives, and 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.
“Pick n Pay is committed to conducting the process fairly, constructively, and in full compliance with applicable labour legislation,” the company notice said.
Source: https://www.algoafm.co.za/business/labour-minister-intervenes-as-job-cuts-loom-at-pick-n-pay