Employment and Labour Minister Nomakhosazana Meth has intervened in Pick n Pay’s planned retrenchments, which could impact up to 22,000 workers across South Africa. The move comes after the Commission for Conciliation, Mediation and Arbitration (CCMA) process was temporarily suspended following the retailer’s Section 189 notice issued in May.
Department of Employment and Labour Spokesperson Thobeka Magcai confirmed the minister’s involvement, stating that both Pick n Pay’s leadership and organized labor unions Cosatu and SACCAWU formally requested the intervention. Minister Meth has been engaged with the matter for approximately two and a half weeks, holding separate meetings with company executives and labor representatives before facilitating a joint discussion focused solely on the Section 189 consultation process.
“The minister is monitoring the situation closely,” Magcai said. “We understand the distress and anxiety this prospect causes for workers and their families. Our department’s mandate is job preservation, and we are committed to assisting both employer and employees toward a sustainable solution.”
While specific negotiation details remain confidential, reports indicate proposals under discussion include adjustments to Sunday pay rates, working hours, transport arrangements, and the structure of annual bonuses. Union representatives have expressed concern that workers face a difficult choice between accepting revised employment conditions or potential job losses. Magcai declined to comment on the specifics, emphasizing the need to allow both parties space to negotiate without external pressure.
“Both parties have agreed to look at these matters and find middle ground,” Magcai noted. “The minister maintains neutrality to ensure the process remains fair and constructive.”
Pick n Pay has cited unsustainable labor costs, which it states are misaligned with industry competitors, as a key factor threatening the business’s long-term viability. In response, the department highlighted available support mechanisms for distressed companies, including the Temporary Employer-Employee Relief Scheme (TEERS) administered through the CCMA, and productivity improvement programs in partnership with Productivity SA.
Magcai commended Pick n Pay for proactively seeking governmental assistance, describing it as a positive step toward job preservation. The minister’s intervention successfully paused a scheduled CCMA proceeding, redirecting discussions back to the negotiation table.
Amid broader economic pressures, including rising fuel costs and a competitive retail landscape, Magcai urged other companies facing similar challenges to engage the Department of Employment and Labour early. “Before considering retrenchments, distressed companies should contact us,” she said. “We may be able to facilitate support that benefits both the business and its workforce.”
As negotiations continue, the department reaffirmed its commitment to balancing worker protections with business sustainability, while acknowledging the uncertainty faced by thousands of employees and their households.
