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.