Pick n Pay under siege

COSATU Parliamentary Coordinator, Matthew Parks, has slated Pick n Pay over its new plan to improve its operational efficiency and service levels.

He argued that the retailer is targeting low-end workers, who are already under financial pressure, through its new Section 189A process.

Parks referred to Pick n Pay’s consultation process with unions on targeted adjustments to its store labour model.

“This process is focused on improving flexibility and operational efficiency, and ensuring the business remains competitive,” Pick n Pay said in a statement.

It explained that certain aspects of its current labour arrangements are above market norms and out of line with current shopping trends.

The uncompetitive arrangements include minimum guaranteed hours, inflexible scheduling practices, and certain benefits and allowances.

“The proposed adjustments are not intended to reduce the total headcount of affected store staff,” Pick n Pay said.

Instead, it is aimed at bringing Pick n Pay’s labour practices into line with its competitors to compete on an even footing.

The consultation will focus on labour flexibility and the total cost of employment for specific store-based staff.

“We must address a critical reality that our current store labour model has been out of balance in the marketplace for some time,” Pick n Pay CEO Sean Summers said.

“If we are to compete on an equal footing in a constrained marketplace, we can no longer sustain structures that are materially above market norms.”

He said the adjustments to its store labour model are an important ingredient in returning the business to profitability.

“Our priority through this process is to protect jobs wherever possible while building a more sustainable business,” he said.

“Our goal is to ensure that Pick n Pay can grow again, open more stores, and continue to provide work for people in the future.”

Matthew Parks raises concerns about the process

Matthew Parks told Newzroom Africa it was encouraging that Pick n Pay does not want to cut staff and go through a retrenchment process.

However, he raised concerns about the changes as they will affect lower-end Pick n Pay employees who are not wealthy.

“They are paid very, very low wages. In fact, one could even describe it as poverty wages,” Parks said in a Newzroom Africa interview.

“They are working in an economy which is really struggling to grow, where the cost of living, especially for low-income workers, is quite painful.”

He said that if Pick n Pay intends to reduce the take-home earnings of staff, it will be a problem as it will make their lives more difficult. I

“They speak about reducing the minimum number of shifts or hours that workers are entitled to, which will have a negative impact on salaries,” he said.

Parks added that they share the concerns of the South African Commercial, Catering and Allied Workers Union (SACCAWU).

These concerns include that Pick n Pay has rushed to go to the media before it has engaged with workers or staff on finding solutions.

“SACCAWU and staff have a vested stake in a successful company which can guarantee jobs, pay a living wage, and improve their conditions,” he said.

He argued that there is a tendency in the South African retail sector to cut costs by starting with cashiers and cleaners, who are low-paid.

“They don’t look at the CEOs. You’ll find a CEO of one of these retail companies earning about a million rand a week,” Parks said.

“When they want to cut costs, it should start at the top. It should not start at the bottom with people who earn low wages.”

SACCAWU attacks Pick n Pay

Last week, SACCAWU said that it was perturbed by the “bad faith and dishonest conduct” of Pick ‘n Pay management.

It was unhappy that Pick n Pay addressed the media before starting negotiations with it regarding the Section 189A process.

“It is mischievous and malicious of Pick n Pay to create an impression that there is in negotiations when in fact there is none,” it said.

It said that Summers did not declare that Pick n Pay had decided to bypass the provisions and directly served workers with Section 189 notices.

SACCAWU argued that Pick n Pay should have served them first, as it is a collective bargaining agent of workers in Pick n Pay.

“This is a clear demonstration of a company that is hell-bent on getting what they want, no matter the implications thereof,” it said.

“The conduct of the company of late has been bordering on arrogance and unilateralism on a scale never experienced before.”

“We are preparing for the mother of all battles, whereupon workers will protect their livelihood and well-being.”

SACCAWU said that it was convening a national session on Pick ‘n Pay to push back against the company and engage with workers on the way forward.