Cape Town – Pick n Pay has withdrawn its proposed retrenchment consultation process, which put approximately 22,000 store-based jobs at risk, following an agreement with its primary labour partner, the South African Commercial, Catering and Allied Workers Union (SACCAWU).
The decision, announced on Thursday, 22 October 2026, marks a significant development in the retailer’s efforts to restructure its supermarket operations while addressing concerns over employment security and working conditions.
According to Daily Investor, the retailer withdrew the Section 189A consultation process after reaching an agreement with SACCAWU.
Pick n Pay acknowledged that the process had been difficult for affected employees, praising the “constructive and respectful manner” in which labour representatives engaged with the company.
Months of negotiations
The move follows months of negotiations and a government intervention after the retailer launched the consultation process on 4 May 2026. The proposed restructuring formed part of its broader turnaround strategy, intended to improve operational efficiency and align staffing arrangements with customer shopping patterns.
The dispute escalated in May when SACCAWU opposed the proposed changes, arguing that they threatened workers’ livelihoods and negotiated benefits. In its reporting, SABC News quoted union representative Cyril Mbenza saying workers were determined to protect their rights and the benefits they had fought for.
In June, Employment and Labour Minister Nomakhosazana Meth intervened, bringing Pick n Pay, SACCAWU and the Congress of South African Trade Unions (COSATU) back to the negotiating table. The department described the agreement to pursue alternatives through collective bargaining as a positive step towards protecting jobs and maintaining business sustainability, according to its official statement.
Labour arrangements
The labour dispute was rooted in Pick n Pay’s efforts to improve the competitiveness of its supermarket business. As Business Day reported in July, the retailer argued that its existing labour arrangements and employment benefits needed to be better aligned with market conditions and customer shopping patterns. SACCAWU, however, maintained that proposed changes to working hours and benefits should be negotiated through established collective bargaining structures.
The withdrawal of the consultation process represents a breakthrough in the dispute, although the precise terms of the agreement and its implications for employees will be important to establish.
Meanwhile, Reuters reported that Pick n Pay also expects its headline loss per share for the first half of its 2027 financial year to narrow by 25% to 35%, reflecting improved trading profit at discount retailer Boxer and a smaller loss in its core Pick n Pay business.
The company is expected to provide further details of the labour agreement alongside its interim financial results on 26 October 2026.
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Compiled by Betha Madhomu
