Retail giant Pick n Pay has started talking to the South African Commercial, Catering, and Allied Workers Union about Section 189A of the Labour Relations Act 66 of 1995.
In a JSE statement on Monday morning, the group said the move is part of efforts to improve efficiency and restore profitability in its core supermarket business.
Section 189A of the Labour Relations Act 66 of 1995 outlines a structured process that employers should follow when contemplating large-scale retrenchments.
It requires companies to consult with unions and affected employees and consider alternatives and aims to minimise job losses.
The process will apply to specific store-based employees within the non-management bargaining unit.
The company has excluded head office employees and management, as they have already undergone restructuring over the past two years, including a wage freeze and staff reductions.
The retailer said the consultation relates to elements of its store labour model, including scheduling flexibility and the alignment of benefits and allowances, which are not in line with market practices and peer benchmarks.
Plan to improve labour flexibility
“The consultation forms part of the strategic action underway to restore the company to sustainable profitability and to strengthen the long-term competitiveness of its core supermarket business,” the company said in a statement.
“The objective of the process is not to reduce head count but rather to improve labour flexibility and cost sustainability while retaining jobs wherever possible and creating the conditions necessary for sustainable employment growth over the longer term.”
The retailer said the process is aimed at addressing labour practices that have become increasingly inflexible and costly over time.
It also highlighted that these no longer align with prevailing retail market practices.
In February, Pick n Pay reported a 1.4% decline in turnover for the period, which was mainly due to the planned closure or conversion of underperforming company-owned supermarkets, a process that is now largely complete.
Despite this, like-for-like sales grew by 2.9%, with company-owned supermarkets recording slightly stronger growth of 3.5%.
- Pick n Pay has initiated consultations with the South African Commercial, Catering, and Allied Workers Union under Section 189A of the Labour Relations Act concerning potential large-scale retrenchments.
- The process targets specific store-based non-management employees, excluding head office and management staff, to improve labour flexibility and cost sustainability.
- The company aims to align its store labour model, including scheduling and benefits, with market practices to restore profitability and competitiveness.
- Pick n Pay emphasizes that the goal is to retain jobs where possible and create conditions for sustainable long-term employment growth, not primarily to reduce headcount.
- The retailer reported a 1.4% turnover decline due to closing or converting underperforming stores but saw a 2.9% increase in like-for-like sales, indicating some operational improvements.
Retail giant Pick n Pay has started talking to the
In a JSE statement on
Section 189A of the Labour Relations Act 66 of 1995 outlines a structured process that employers should follow when contemplating large-scale retrenchments.
It requires companies to consult with unions and affected employees and consider alternatives and aims to minimise job losses.
“
“
It also highlighted that these no longer align with prevailing retail market practices.
In February, Pick n Pay reported a 1.4% decline in turnover for the period, which was mainly due to the planned closure or conversion of underperforming company-owned supermarkets, a process that is now largely complete.
Despite this, like-for-like sales grew by 2.9%, with company-owned supermarkets recording slightly stronger growth of 3.5%.
