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Over 20 000 Pick n Pay workers face retrenchment amid restructuring plans

By Mapaballo Borotho

Over 20 000 Pick' n Pay workers face retrenchment amid restructuring plans
Image @Pick_n_Pay website
  • More than 22 000 Pick n Pay workers could face retrenchment as the retailer moves ahead with restructuring plans.
  • Trade unions SACCAWU and COSATU have strongly opposed the process, accusing the company of attempting to cut long-standing worker benefits and bypass union procedures.
  • The unions say they are prepared to use legal avenues to protect jobs and prevent worsening poverty and inequality.

More than 22 000 workers could face retrenchment at one of South Africa’s leading retailers, Pick n Pay, as the company moves ahead with restructuring plans.

Trade unions, South African Commercial Catering and Allied Workers Union (SACCAWU) and Congress of South African Trade Unions (COSATU) have vowed to resist the process and fight for thousands of workers who may lose their jobs.

“More maddening is that Pick n Pay attempted to bypass the process by serving the Section 189 notices directly to workers and not to the union, which is the collective bargaining agent for workers at the company,” said COSATU spokesperson Zanele Sabela.

At the centre of the dispute is Pick n Pay’s alleged attempt to remove benefits workers have secured over the years.

SACCAWU claims the retailer is using the Section 189 process to pressure the union into agreeing to the removal of transport provided to workers whose shifts end after normal public transport operating hours.

The union also alleges that Pick n Pay wants to withdraw subsidised meals offered to workers, cancel all legacy agreements with SACCAWU, remove the Sunday premium paid to full-time workers and scrap the 13th cheque.

In addition, SACCAWU believes the retailer intends reducing guaranteed working hours for full-time workers from 196 hours to 130 hours per month by converting them into variable-time employees without benefits.

The union has warned that the proposed restructuring will deepen poverty, unemployment and inequality among workers and their families.

Furthermore, SACCAWU said it is prepared to use all available legal mechanisms to protect and fight for affected workers.

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