Pick n Pay’s primary union, the South African Commercial, Catering and Allied Workers Union (SACCAWU), has dragged the retailer to the Labour Court, in an effort to block the retrenchment process.
The retailer invoked Section 189, which will affect 22 000 store-based employees, having started the negotiations with the union on May 4.
The retrenchments form part of a new restructuring process, in an effort to bring Pick n Pay back to its former glory. Pick n Pay South Africa recorded a 0.4% decline for the 20 weeks ended July 19. With the 7.2% turnover from Boxer, group turnover totalled 2.7%.
Meth’s intervention proves unfruitful
The retrenchment process was halted after intervention by Minister of Employment and Labour, Nomakhosazana Meth, asked that the union and the retailer go back to the drawing board and find alternatives to save the company from the bloodbath.
After the intervention was deemed not entirely fruitful, SACCAWU approached the Labour Court to halt the retrenchment processes.
Pick n Pay confirmed in their trading update for the 20 weeks ended July that the consultations are still ongoing but that the matter has been referred a dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA).
“The proposed changes to terms and conditions (as alternatives to retrenchment) form part of the Group’s ongoing turnaround strategy and are aimed at ensuring that store-based practices, organisational structures and terms and conditions of employment remain sustainable, competitive and aligned with the requirements of the retail market.
“The consultation process has not yet concluded, and no final outcome have been determined. Pick n Pay will provide further update as the process progress,” the company said.
SACCAWU accuses retailer of dragging process with particular end in mind
Sithembiso Tshwete, SACCAWU spokesperson, said Pick n Pay had been dragging the consultation process which would mean the retrenchment process would be effective within 60 days from start of the consultation, without proper consultations.
“We asked for an extension because we understand that the delays are a strategy to end the consultation process, to which they would be allowed to unilaterally take a decision, even if it is the approval of these mass retrenchments.
“They gave us options and these included cutting hours and cutting staff, we are still going through all of that and we should be allowed enough time to see how jobs can be saved because the economy is already bad as it is,” said Tshwete.
Read More: Pick n Pay profits fall further as Boxer keeps group afloat
- SACCAWU has taken Pick n Pay to the Labour Court to block retrenchments affecting 22,000 store-based employees under Section 189.
- Pick n Pay's retrenchment process began negotiations with SACCAWU on May 4 and is part of a larger restructuring effort following a 0.4% sales decline.
- Labour Minister Nomakhosazana Meth's intervention to find alternatives to retrenchments was unsuccessful, prompting SACCAWU to seek court action.
- The retrenchment dispute is currently before the Commission for Conciliation, Mediation and Arbitration (CCMA), with consultations ongoing and no final decision made.
- SACCAWU accuses Pick n Pay of deliberately delaying the consultation process to push through retrenchments without proper negotiations.
