The South African Commercial, Catering and Allied Workers Union (SACCAWU) has strongly criticized Pick n Pay’s Section 189A retrenchment process, accusing the retailer of placing the burden of corporate restructuring on vulnerable workers while senior executives remain largely unaffected.
Brenita Cloete, First Deputy President of SACCAWU, stated that the union’s primary concern is that the company is attempting to pass financial pressures onto ordinary employees despite executives continuing to receive full compensation packages. “It seems like they have no proper strategy to actually get the business out of the problem that we are finding ourselves in,” Cloete said.
Pick n Pay has maintained that its turnaround strategy is gaining traction but argues that labor costs remain structurally misaligned with competitors, prompting the Section 189 consultation process aimed at reshaping its labor model. The union, however, disputes this rationale.
Cloete highlighted that Pick n Pay has previously introduced strategies that were not fully implemented. She cited a 2022 multis-skilling agreement, designed to allow frontline employees to work across departments, which the union says failed because the company’s systems could not accommodate scheduling for secondary roles. “They made the union sign this agreement… but their system is unable to schedule employees for secondary jobs,” Cloete explained.
Regarding claims that Pick n Pay’s labor costs exceed those of competitors, Cloete noted that the union’s negotiating committee repeatedly requested comparative data to inform discussions, but the company was unable to provide it. She added that, to her knowledge, competitors such as Woolworths offer higher hourly wage rates than Pick n Pay.
While Pick n Pay has frozen executive salary increases, Cloete argued this does not address existing high compensation levels. She referenced substantial “golden handshakes” awarded to previous CEOs despite periods of poor business performance. Cloete also questioned the impact of current CEO Sean Summers’ focus on hiring “critical skills,” noting that the business has reported a R2 billion loss both before and during his tenure. “Where is the strategy not really working? And why must workers, the vulnerable workers, take the brunt for that strategy not working?” she asked.
Cloete expressed concern over mixed messaging from leadership, noting that while Summers has publicly stated he does not wish to retrain workers, he has also issued internal videos expressing care for staff. “How do you love people when you want to destroy their livelihood?” she questioned.
The union has proposed open, frank negotiations with full transparency to collaboratively address the company’s financial challenges. Cloete stated that management has been providing only “piecemeal information,” which hinders the union’s ability to make informed contributions. She illustrated this with the evolving multis-skilling agreement: after the union agreed to consider revised terms affecting 196 employees, the company reportedly shifted to proposing a 176-hour contract for all staff—a change Cloete described as moving the goalposts.
SACCAWU has affirmed it will continue engaging with Pick n Pay to advocate for workers’ livelihoods throughout the consultation process.
