SACCAWU says it is preparing to oppose Pick n Pay’s restructuring process, warning that around 22,000 workers could be affected.
The dispute relates to the retailer’s Section 189A consultation process involving store employees in its Non-Management Bargaining Unit, launched as part of Pick n Pay’s turnaround efforts to improve efficiency and competitiveness.
The union accused the retailer of sidestepping established engagement structures and rejected reports suggesting negotiations over revised employment terms were already under way.
According to SACCAWU, workers are being pressured to either accept retrenchments or agree to reduced employment conditions, including changes to collective agreements and benefits negotiated over many years. COSATU has backed the union’s stance against possible job cuts and changes to worker benefits.
Pick n Pay said the process is aimed at reviewing labour flexibility and employment structures that it believes no longer match market conditions or changing customer shopping habits. The retailer insisted the consultation process is not intended to permanently reduce staff numbers, but to create a more sustainable operating model.
CEO Sean Summers said the retailer has already implemented major restructuring measures, including store closures, support office changes, salary freezes and the listing of Boxer, as part of efforts to restore profitability.
SACCAWU claims the proposals could reduce monthly working hours from 196 to 176, cutting wages by roughly R2,000 per employee, while also removing transport support for certain late-shift workers.
The union criticised Pick n Pay for referring the matter to the CCMA before tabling proposals internally and warned it may pursue industrial action if the dispute escalates.
Pick n Pay’s latest interim results showed its group loss before tax and capital items narrowed to R317 million, compared with R1.1 billion in the previous comparable period.
SACCAWU pushes back against Pick n Pay restructuring plans
SACCAWU says it is preparing to oppose Pick n Pay’s restructuring process, warning that around 22,000 workers could be affected.
The dispute relates to the retailer’s Section 189A consultation process involving store employees in its Non-Management Bargaining Unit, launched as part of Pick n Pay’s turnaround efforts to improve efficiency and competitiveness.
The union accused the retailer of sidestepping established engagement structures and rejected reports suggesting negotiations over revised employment terms were already under way.
According to SACCAWU, workers are being pressured to either accept retrenchments or agree to reduced employment conditions, including changes to collective agreements and benefits negotiated over many years. COSATU has backed the union’s stance against possible job cuts and changes to worker benefits.
Pick n Pay said the process is aimed at reviewing labour flexibility and employment structures that it believes no longer match market conditions or changing customer shopping habits. The retailer insisted the consultation process is not intended to permanently reduce staff numbers, but to create a more sustainable operating model.
CEO Sean Summers said the retailer has already implemented major restructuring measures, including store closures, support office changes, salary freezes and the listing of Boxer, as part of efforts to restore profitability.
SACCAWU claims the proposals could reduce monthly working hours from 196 to 176, cutting wages by roughly R2,000 per employee, while also removing transport support for certain late-shift workers.
The union criticised Pick n Pay for referring the matter to the CCMA before tabling proposals internally and warned it may pursue industrial action if the dispute escalates.
Pick n Pay’s latest interim results showed its group loss before tax and capital items narrowed to R317 million, compared with R1.1 billion in the previous comparable period.