Pick n Pay backtracks on retrenchments impacting 22,000 jobs

Pick n Pay has withdrawn its Section 189A consultation process, which could have resulted in the retailer cutting 22,000 store-based jobs.

The retailer said it decided to withdraw after it reached an agreement with its primary labour partner, SACCAWU.

This comes after Employment and Labour Minister Nomakhosazana Meth intervened in June 2026, leading Pick n Pay to put its planned retrenchments on ice.

On Thursday, 22 October, Pick n Pay announced that it has withdrawn the consultation process initiated in terms of Section 189A of the Labour Relations Act.

“The company recognises that the consultation process has been difficult for those affected,” it said in a trading statement.

The retailer acknowledged “the constructive and respectful manner in which our labour partners and employee representatives engaged throughout the process”.

Pick n Pay first initiated the Section 189 process on 4 May 2026, kicking off a 60-day consultation procedure towards the retrenchments.

At the time, the retailer explained that these potential job cuts formed part of the next phase of its turnaround.

It said the intent was not to reduce employees, but to implement a store labour model that balances competitiveness with responsible employment.

“It is aimed at enabling stores to better respond to customer shopping patterns and service needs,” Pick n Pay said.

“The proposed adjustments are needed to bring the retailer’s labour practices more into line with its competitors to compete on an even footing,” CEO Sean Summers said.

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

The groups accused Pick n Pay of attempting to bypass unions by serving Section 189 notices directly to workers.

According to SACCAWU, these retrenchments threatened 22,000 store-based employees.

This sparked fears of widespread strikes, prompting Summers to request the Labour Minister’s intervention.

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

“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 Labour Department said at the time.