Union says Pick n Pay restructuring threat puts 22,000 jobs at risk

The South African Commercial Catering and Allied Workers Union (Saccawu) says it will strongly oppose Pick n Pay’s proposed restructuring process, which could affect about 22,000 employees.

In a statement on Monday, the union accused the retailer of threatening workers with retrenchments or forcing them to accept reduced working conditions aimed at cutting labour costs in the company’s non-management bargaining unit.

According to Saccawu, workers recently received Section 189A notices through the Commission for Conciliation, Mediation and Arbitration (CCMA), initiating a large-scale retrenchment consultation process.

The union said employees were effectively being presented with “two undesirable choices”: accepting possible retrenchments or agreeing to changes in employment conditions, including the cancellation of existing collective agreements.

Saccawu accused the company of acting in bad faith by referring the matter to the CCMA before formally tabling proposals with the union through established internal negotiating structures.

Among the proposed changes highlighted by the union are a reduction in monthly working hours from 196 to 176 hours, which Saccawu claims could reduce workers’ salaries by about R2,000 a month.

The union said the company also intends to remove transport arrangements for employees working late-night shifts, withdraw the 13th cheque for bargaining unit employees and end additional Sunday pay by treating Sundays as normal working days.

Other proposed changes include removing negotiated benefits for part-time employees and scrapping an existing flexibility and multi-skilling agreement.

Saccawu argued that workers were being unfairly blamed for the retailer’s financial difficulties while executives and management structures were protected.

“Workers cannot continue to bear the burden of corporate restructuring and business challenges, while executives and shareholders are protected,” the union said.

The union further claimed Pick n Pay’s previous leadership decisions contributed to the retailer’s decline and said workers had remained loyal despite difficult working conditions.

Saccawu warned that the proposed restructuring would deepen poverty, unemployment and inequality among workers and their families.

The union called on the department of employment and labour to urgently intervene to safeguard jobs, ensure compliance with labour laws and protect collective bargaining agreements.

Saccawu said it was prepared to use “all organisational and legal mechanisms” to defend workers and warned that industrial action could follow if consultations fail to produce an acceptable outcome.

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