Pick n Pay Withdraws Labour Restructuring Plan Affecting 22,000 Workers

Pick n Pay has withdrawn a labour restructuring process that put changes to the working conditions of approximately 22,000 store employees at stake, following an agreement with the South African Commercial, Catering and Allied Workers Union (SACCAWU). The retailer's latest results show that, despite reducing its losses, its core supermarket business remains under pressure.

The Section 189A consultation process began in May 2026 as part of Pick n Pay's efforts to reduce operating costs and improve the competitiveness of its supermarket operations. Although the process raised concerns about potential job losses, the retailer said its intention was to restructure the store labour model rather than reduce overall headcount.

The dispute centred on proposed changes to working conditions and benefits. SACCAWU opposed the proposals, arguing that they would place an unfair burden on employees. Employment and Labour Minister Nomakhosazana Meth also intervened during the negotiations.

Pick n Pay announced on 22 October that it had reached an agreement with SACCAWU and formally withdrawn the consultation process. In its interim results released on 26 October, the company said the agreement would introduce a simpler store labour model, allowing more flexible staff scheduling and improved cost management. The full commercial and employment implications of the agreement will depend on how the revised arrangements are implemented.

Losses Narrow, but Turnaround Continues

Pick n Pay's latest interim results show that the retailer is making progress in reducing its losses, although its core supermarket business remains under pressure. Boxer continued to perform strongly, while the Pick n Pay supermarket segment reduced its trading loss. The company says further improvements are needed to restore the supermarket business to sustainable profitability.

However, Pick n Pay's core supermarket operation remains loss-making. The segment recorded a trading loss of approximately R500 million, and the group said further improvements were needed to achieve sustainable profitability. Higher fuel prices, food inflation and pressure on household spending also continue to weigh on the outlook.

The agreement removes a major point of conflict between the retailer and its workforce, but the financial results show the scale of the remaining challenge: Pick n Pay must improve the performance of its supermarket business while controlling costs without reopening the dispute over employees' working conditions.