Business Report

Minister intervenes to halt job losses at Pick n Pay

Mthobisi Nozulela|Updated
Minister of Employment and Labour Nomakhosazana Meth has stepped in to try to stop possible job losses at Pick n Pay

Minister of Employment and Labour Nomakhosazana Meth has stepped in to try to stop possible job losses at Pick n Pay

Image: Facebook/PicknPay

Minister of Employment and Labour Nomakhosazana Meth has stepped in to try to stop possible job losses at Pick n Pay, where more than 22,000 workers could be affected by a retrenchment process.

IOL had previously reported that the retailer was entering talks with about 22,000 of its staff over the next phase of its turnaround strategy -  a restructuring of its store labour model that will aim to improve flexibility and operational efficiency of its stores.

The retailer had also issued a Section 189 notice in May, starting a formal consultation process that could lead to job cuts based on its operational needs.

In a statement issued to the media, the Minister said she had convened a meeting with Pick n Pay management, labour unions COSATU and SACCAWU, and other stakeholders to help facilitate talks aimed at avoiding large-scale job losses.

She said the discussions were constructive and that all parties had agreed to continue engaging to find alternatives to retrenchments while protecting jobs and ensuring long-term stability.

"The Minister's intervention successfully steered the parties toward common ground, prioritising job security and economic stability. The parties have agreed to return to the bargaining table with set timelines, following an intensive six-hour engagement session yesterday, Wednesday, 3 June.

"The meeting follows requests by both Pick 'n Pay CEO and Organised Labour, for the Minister's intervention in the matter".

The Minister also thanked all parties for their willingness to engage in dialogue and for committing to continue negotiations in good faith.

She said the process remains sensitive and ongoing, and that no further details will be shared at this stage in order to protect the integrity of the talks.

"l want to highly commend the leadership of Pick n Pay, COSATU and SACCAWU for their maturity, patriotism and willingness to find each other. By agreeing to actively look for alternative, sustainable solutions through the collective bargaining negotiations, it is a positive step for workers, the retail sector and South Africans in general. Furthermore, we extend our best wishes to all parties."

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