Pick n Pay is proposing significant changes to its labour model, including cuts to Sunday pay and requiring more full-time staff to work weekends. This decision comes amid ongoing financial struggles.
The company has launched a Section 189 process that affects approximately 22,000 store workers. Proposed changes include reducing Sunday pay, where workers currently earn double, while competitors offer only 1.5 times the normal rates.
Sean Summers, the company’s representative, stated that employment conditions at Pick n Pay are significantly more generous than those of competitors. He noted that the business faces an existential crisis after years of strategic missteps and aggressive competition from Shoprite.
In light of these challenges, Summers emphasized that the current cost structure has become a structural issue for the business. The group warned of a 20% increase in annual loss this year and saw a 5% drop in shares on Monday.
A three-year wage agreement with SACCAWU is set to expire in March next year, affecting some agreed terms. The consultation process is expected to run over the coming weeks as the company explores options to minimize job losses.
Summers acknowledged the difficulties this proposal may cause for affected employees. He assured that Pick n Pay is committed to a fair and transparent process in line with its values and labor legislation.
The retailer’s turnaround challenge is both structural and cultural. Summers argues that recovery depends on being upfront about shortcomings. As the situation develops, employees await further details on how these changes will impact their roles.
