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/