Pick n Pay Retrenchment Process Affecting 22,000 Workers Put On Hold After Government Steps In
Minister Intervenes As Retrenchment Talks Pause
Thousands of workers at South African retailer Pick n Pay have received a temporary reprieve after the company’s retrenchment process affecting 22,000 employees was halted following intervention by Employment and Labour Minister Nomakhosazana Meth.
The development comes after Pick n Pay initiated a Section 189 consultation process on 4 May 2026. The process is used by employers when considering retrenchments due to operational requirements.
The company had previously indicated that it wanted to address workplace arrangements which it believed were affecting operational efficiency and profitability.
The intervention followed appeals from organised labour and Pick n Pay chief executive Sean Summers for government involvement in the matter.
Speaking after meetings involving the retailer, labour unions and government representatives, Meth praised the parties for agreeing to continue discussions.
She said:
“I want to highly commend the leadership of Pick n Pay, COSATU and SACCAWU for their maturity, patriotism and willingness to find each other.”
The minister added:
“By agreeing to actively look for alternative, sustainable solutions through the collective bargaining negotiations, it is a positive step for workers, the retail sector and South Africans in general.”
Why Pick n Pay Started The Process
Pick n Pay launched the consultation process as part of efforts to improve flexibility within its operations.
The retailer argued that some labour arrangements no longer matched modern shopping patterns. According to the company, many experienced employees work mainly during weekdays, while customer traffic is often highest on Fridays, Saturdays and Sundays.
The company also cited concerns around minimum guaranteed hours, scheduling practices and employee benefits.
Pick n Pay previously stated that the exercise was not intended to reduce staff numbers and that it remained willing to explore alternatives that could save jobs.
The retailer has been under pressure to improve its financial performance. It recently reported a total comprehensive loss of R185 million (about US$10.3 million).
The company believes operational changes are necessary to strengthen the business and reduce future risks.
Unions And Retailer Return To Negotiations
The Department of Employment and Labour said discussions involving Pick n Pay, the Congress of South African Trade Unions (COSATU) and the South African Commercial, Catering and Allied Workers Union (SACCAWU) lasted approximately six hours.
Officials said the talks helped establish common ground, with protecting jobs and maintaining economic stability emerging as key priorities.
According to the department, the Commission for Conciliation, Mediation and Arbitration (CCMA) process has now been paused while negotiations continue.
The department described the suspension as a significant breakthrough.
Pick n Pay confirmed that discussions remain ongoing.
The retailer told BusinessTech:
“A meeting was held yesterday with the identified parties, and our engagements continue.”
The company did not provide further comment.
With consultations continuing, the future of the 22,000 workers affected by the process remains under discussion as government, unions and the retailer seek alternative solutions.