‘Our engagements continue’ – Pick n Pay on halting retrenchments of 22,000 workers

Pick n Pay group has paused retrenchments affecting 22 000 workers across different levels within the company after a meeting with Employment and Labour Minister Nomakhosazana Meth and other relevant parties. But the possibility of retrenchments is not completely off the table. The retailer previously said it is looking to restructure to return to profitability, which included letting go of at least 22 000 workers.

This move was met with criticism from the South African Commercial Catering and Allied Workers Union (SACCAWU), whichaccused Pick n Pay of sacrificing employeesinstead of restructuring executives’ remuneration packages. However, a meeting with Meth and the retailer’s top executives resulted in a pause in retrenchments initiated on 4 May 2026. The retailer confirmed toThe Citizenon Friday afternoon that a meeting did take place, and talks with relevant parties continue.

“A meeting was held yesterday with the identified parties, and our engagements continue,” said the retailer. According to the Department of Employment and Labour, the meeting was attended by Meth, Congress of South African Trade Unions (Cosatu) General Secretary Solly Phetoe, Pick ‘n Pay top Executives, led by Group CEO Sean Summers, including Pick ‘n Pay national Company Council Chairperson Cyril Mpanza, among others. The department said Meth’s intervention successfully steered the parties towards common ground, prioritising job security and economic stability.

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“The parties have agreed to return to the bargaining table with set timelines, following an intensive six-hour engagement session on Wednesday,” reads thestatement. If the retailer does not retrench any workers, as per its restructuring strategy, it would have to look atways it could make a profit. Or riskreturning to technical insolvency.

“I want to highly commend the leadership of Pick n Pay, COSATU and SACCAWU for their maturity, patriotism and willingness to find each other,” said Meth. “By agreeing to actively look for alternative, sustainable solutions through the collective bargaining negotiations is a positive step for workers, the retail sector and South Africans in general. Furthermore, we extend our best wishes to all parties.” This isnot the first time the retailer has lookedat restructuring itself to make a profit.

Another strategy it has executed islisting its subsidiary, Boxer on the JSE. And it worked as Pick n Pay was able to make money from the IPO.

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