SACCAWU blasts Pick n Pay restructuring plans

SACCAWU has condemned Pick n Pay’s restructuring plans, warning that proposed pay cuts, reduced benefits and possible retrenchments threaten the livelihoods and working conditions of about 22,000 employees across South Africa.

The South African Commercial Catering and Allied Workers Union (SACCAWU) has strongly condemned what it has described as a threat to job security and negotiated working conditions affecting approximately 22,000 Pick n Pay workers.

In a media briefing on Monday, the union said the company’s restructuring process presents employees with what it called two undesirable choices, stating that workers are being forced to either accept retrenchments or agree to the downward variation of their employment conditions.

The union also criticised the retail giant’s decision to refer the dispute directly to the Commission for Conciliation, Mediation and Arbitration (CCMA) before presenting proposals through established internal negotiation structures.

“(Pick n Pay CEO) 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.”

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SACCAWU said the proposals included reducing monthly working hours from 196 to 176, which could result in about a R2,000 pay cut per worker, removing transport for late and night shifts, scrapping the 13th cheque for non-management staff, ending Sunday pay premiums, withdrawing benefits for part-time employees, and eliminating existing flexibility and multi-skilling agreements.

The union accused the company of protecting top management salaries while placing the burden of restructuring on lower-level employees.

In its statement, SACCAWU claimed management was sacrificing workers’ livelihoods.

“Pick n Pay management is hellbent on ringfencing their own high salaries and benefits, while deepening the levels of poverty, unemployment, inequality, and economic hardship.”

The union also raised concerns about the effectiveness of CCMA-facilitated processes, arguing that Section 189 and 189A procedures may reduce meaningful negotiation.

SACCAWU warned that it was prepared to escalate the matter if necessary, stating that it was ready to mobilise members and communities in defence of jobs and collective agreements, including the possibility of industrial action.

Pick n Pay has described the move as the next step in a multi-year financial turnaround that has already seen the closure of many loss-making stores, the repayment of debt, and the freezing of salaries.