Pick n Pay hits pause on retrenchments that could impact 22,000 jobs

Pick n Pay has halted a retrenchment process that could have impacted over 22,000 workers following an intervention by Employment and Labour Minister Nomakhosazana Meth.

This comes after Pick n Pay submitted a Section 189 notice on 4 May 2026, commencing a 60-day consultation process towards the retrenchments.

This drew furore from organisations like the Congress of South African Trade Unions (COSATU) and the South African Commercial, Catering and Allied Workers Union (SACCAWU).

These groups accused Pick n Pay of attempting to bypass unions by serving Section 189 notices directly to workers, among other allegations.

This led to fears of widespread strikes, which prompted Pick n Pay CEO Sean Summers to request the Labour Minister’s intervention.

Meth recently convened the national leadership of COSATU, SACCAWU, and top Pick n Pay executives, including Summers.

According to a statement from the Department of Employment and Labour, Meth’s intervention was successful in steering the parties toward common ground.

“The parties have agreed to return to the bargaining table with set timelines, following an intensive six-hour engagement session yesterday, Wednesday, 3 June,” the department said. 

Meth commended Pick n Pay’s leadership, COSATU, and SACCAWU for their “maturity, patriotism and willingness to find each other”.

The department explained that talks are now at a highly delicate stage, and that the mood is optimistic, and the halt of the Commission for Conciliation, Mediation and Arbitration process is a major milestone.

“All parties have agreed to handle the ongoing discussions with utmost care and sensitivity,” it said.

“The Department of Employment and Labour remains committed to facilitating a fair, sustainable outcome that protects the livelihood of all parties, while ensuring business sustainability.”

Meth said that agreeing to actively look for alternative solutions through the collective bargaining negotiations is a positive step for workers, the retail sector, and South Africans in general.

Pick n Pay’s decision to initiate Section 189 proceedings comes as the retailer is in the midst of a turnaround, attempting to improve operations in its core Supermarkets segment.