Retrenchments are not completely off the table.
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Pick n Pay group has paused retrenchments affecting 22 000 workers across different levels within the company after a meeting with Employment and Labour Minister Nomakhosazana Meth and other relevant parties. But the possibility of retrenchments is not completely off the table.
The retailer previously said it is looking to restructure to return to profitability, which included letting go of at least 22 000 workers. This move was met with criticism from the South African Commercial Catering and Allied Workers Union (SACCAWU), which accused Pick n Pay of sacrificing employees instead of restructuring executives’ remuneration packages.
However, a meeting with Meth and the retailer’s top executives resulted in a pause in retrenchments initiated on 4 May 2026.
Talks resume with Pick n Pay
The retailer confirmed to The Citizen on Friday afternoon that a meeting did take place, and talks with relevant parties continue.
“A meeting was held yesterday with the identified parties, and our engagements continue,” said the retailer.
According to the Department of Employment and Labour, the meeting was attended by Meth, Congress of South African Trade Unions (Cosatu) General Secretary Solly Phetoe, Pick ‘n Pay top Executives, led by Group CEO Sean Summers, including Pick ‘n Pay national Company Council Chairperson Cyril Mpanza, among others.
Pick n Pay returns to the drawing board
The department said Meth’s intervention successfully steered the parties towards common ground, prioritising job security and economic stability.
“The parties have agreed to return to the bargaining table with set timelines, following an intensive six-hour engagement session on Wednesday,” reads the statement.
If the retailer does not retrench any workers, as per its restructuring strategy, it would have to look at ways it could make a profit. Or risk returning to technical insolvency.
Maturity with each other
“I want to highly commend the leadership of Pick n Pay, COSATU and SACCAWU for their maturity, patriotism and willingness to find each other,” said Meth.
“By agreeing to actively look for alternative, sustainable solutions through the collective bargaining negotiations is a positive step for workers, the retail sector and South Africans in general. Furthermore, we extend our best wishes to all parties.”
This is not the first time the retailer has looked at restructuring itself to make a profit. Another strategy it has executed is listing its subsidiary, Boxer on the JSE. And it worked as Pick n Pay was able to make money from the IPO.
No further comment
“Talks are currently at a highly delicate stage,” said the department.
“While the mood is optimistic and the halt of the CCMA process is a major milestone, all parties have agreed to handle the ongoing discussions with utmost care and sensitivity.
“To ensure that progress is made, and the integrity of the negotiation process is preserved, no further comment will be provided at this stage until final agreement is reached.”
