Saccawu in a fight with Pick ‘n Pay over restructuring and retrenchment

The South African Commercial Catering and Allied Workers Union (Saccawu) says it will be meeting with Pick ‘n Pay next week Thursday for further consultation on “imminent retrenchments” initiated by the retail giant.

According to the union, about 2,200 jobs are threatened by either retrenchments or the downgrading of work conditions. The retail giant has initiated consultations regarding potential retrenchment due to operational requirements, via the Commission for Conciliation, Mediation and Arbitration (CCMA).

Saccawu claims that the threat of retrenchments is aimed at ordinary workers. “While Pick ‘n Pay singles out the employees’ working conditions in the NMBU [non-management bargaining unit], they conveniently do not show how much, as a percentage of the company’s wage bill, is allocated towards its Executives and Management structure,” said the union.

South Africa’s sixth biggest retail company denies that the consultations will lead to the reduction of the total number of workers at store level, insisting that it intends to bring the company’s labour practices to the same level as their competitors.

According to Pick ‘n Pay, their labour arrangements make it less competitive: “Certain aspects of Pick ‘n Pay’s current labour arrangements – such as minimum guaranteed hours, inflexible scheduling practices, and certain benefits and allowances – are above market norms and out of line with current shopping trends. The proposed adjustments are not intended to reduce the total headcount of affected store staff, but rather to bring the retailer’s labour practices more into line with its competitors to compete on an even footing”.

Speaking to Elitsha, Saccawu’s first deputy president, Brenita Cloete said that they are unable to verify the claim that Pick ‘n Pay is making because other retailers do not make that information public.

The company also denies that they are targeting the working conditions of ordinary workers as claimed by Saccawu. “As part of earlier turnaround steps, Pick ‘n Pay has restructured its head office and support functions, alongside implementing leadership cost reductions and tighter cost controls. This work continues as part of efforts to build a more sustainable business,” said Pick ‘n Pay.

Saccawu has previously fought against the super exploitative employment regimes in Walmart that Pick ‘n Pay wants now to follow. Photo by Rob Rees.

The changes that the company is proposing would affect working hours, transport arrangements for night-shift workers, the 13th cheque, and Sunday pay rate, among others, according to the union.

Reducing working hours from 196 hours per month to 176 hours (this is equivalent to a R2,000 reduction in wages per employee)

Doing away with transport for employees who work late shifts that fall outside normal public transport schedules, and those who work a night shift.

Withdrawing the negotiated 13th cheque for the non-management bargaining unit.

Scrapping the legislated 1.5% Sunday pay, by treating Sunday as a normal working day.

Doing away with benefits negotiated for part-time employees.

Doing away with a flexibility and multi-skilling agreement.

Threats of a strike and minister’s intervention

If Pick ‘n Pay forges ahead with its plan to restructure work conditions, Saccawu will organise industrial action against the retail giant.

“Given the employment relations crisis that Pick ‘n Pay’s proposed threat of large-scale restructuring and retrenchments brings, the Ministry of Department of Employment and Labour must intervene in this instance to urgently safeguard jobs and ensure compliance with labour laws, and adherence to collective agreements and a fair consultation process,” said the union in a press statement.

Cloete confirmed that the Minister of Employment and Labour has been informed and asked to intervene by the unions’ federation, the Congress of South African Trade Unions (Cosatu).

According to the Labour Force Survey released by Statistics South Africa on Tuesday, the official unemployment rate rose from 31.4% to 32.7% in the first three months of 2026. The expanded unemployment rate rose to 43.7 % , while youth unemployment climbed to approximately 45.8%. From January to March 2026, South Africa lost 345,000 jobs.

The retail sector is the second biggest employer in the country and the majority of those employed are black women. A 2024 report by Just Share, a shareholder activist group, revealed the massive inequality in the industry: the average lowest-paid worker would need to work for 21 months to earn what a CEO in this sector earns in a single day.

“If further provoked we are organisationally ready to mobilise and campaign to rally our members and communities to unleash industrial and mass action in defence of our members, their families, collective agreements, workers’ rights and our country’s economy from vultures seeking to devour human progress and… a better life for workers,” said the union.