22 000 Pick n Pay staff impacted by restructuring

Pick n Pay’s management aim to restructure the labour model at its stores to take into account changes in the retail environment such as customers shopping later in the day and over the weekend. PICK n Pay is 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. Theretailer, which warned in February that headline loss per share was expected to widen by more than 20% compared to the 2025 year, despite two years of turnaround initiatives, said the latest consultations will exclude head-office employees, who had already seen their numbers decline through restructuring, and who had faced a salary freeze over the past 24 months.

“Certain aspects of Pick n Pay’s labour arrangements – such as minimum guaranteed hours, inflexible scheduling practices, and certain benefits and allowances – are above market norms and out of line with current shopping trends. “The adjustments are not intended to reduce the total headcount of affected store staff, but rather to bring the retailer’s labour practices more into line with itscompetitorsto compete on an even footing,” the group said in a statement on Monday. CEOSean Summerssaid the review was part of a phased plan to stabilise and rebuild the group supermarket business.

Pick n Pay has initiated a Section 189A consultation process with the South African Commercial, Catering and Allied Workers Union (SACCAWU) and store-based employees within the Non-Management Bargaining Unit. Reflecting on the group’s turnaround journey so far, Summers said significant structural and financial changes had been made, including adjusting the group holding structure and the listing of Boxer to reduce debt, the resetting of the store estate that involved some store closures, restructuring of the support offices, and a salary freeze for support office staff. He said their current store labour model has been out of balance in the marketplace for some time.

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“While established with positive intention, these structures have become increasingly complex, reducing flexibility and our ability to respond to retail trends and customer demands,” he said. “We recognise this will be a difficult time for affected employees… This will be a challenging time, but we also know that hard decisions must be made to align with market realities to secure a stronger, more competitive, and more sustainable business,” he said.

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