The South African Commercial Catering and Allied Workers Union (Saccawu) has accused Pick n Pay of placing the burden of its turnaround on workers, while blaming past leadership decisions for the retailer’s current financial and operational challenges.
The union was speaking at a media briefing following the company’s decision to trigger a section 189A process, which allows for consultations over large-scale restructuring that could affect jobs, working hours and conditions.
Saccawu said the process threatens the job security and negotiated conditions of about 22,000 workers. It said the company is seeking sweeping changes to reduce its wage bill, including:
- cutting working hours;
- scrapping benefits; and
- altering pay structures.
“The company’s threat of shedding jobs, unless workers accept downward variation of their working conditions, is fundamentally based on reducing the company’s non-management bargaining unit wage bill,” the union said.
Among the proposed changes outlined by the union are:
- a reduction in working hours from 196 hours to 176 hours per month;
- the removal of a 13th cheque;
- changes to Sunday pay; and
- the withdrawal of transport for employees working late or night shifts.
The union said these changes would reduce workers’ earnings and affect their working conditions.
Saccawu also criticised the company for referring the matter to the CCMA under section 189A instead of engaging through established internal bargaining structures.
“Pick n Pay’s decision to refer an S189A dispute to the CCMA, rather than table its proposals at the established internal national negotiating committee processes … is indicative of its attempts to unilaterally change working conditions,” the union said.
The union said it believes the company is acting in bad faith and warned that the process could undermine collective bargaining agreements and worker protections.
‘Shell of former glory’
At the same time, Saccawu placed responsibility for the company’s decline on previous management decisions, arguing that workers should not be made to carry the cost of the turnaround.
“Pick n Pay also neglects to admit that its previous two CEO appointments have driven the company down from a status of healthy profitability and market share into the shell of its former glory,” the union said.
Pick n Pay had said the section 189A process formed part of a broader turnaround strategy aimed at improving efficiency and aligning its cost base with market conditions. The company indicated that consultations with the union and employees will determine the final outcome of the proposed changes.
The restructuring comes as the retailer continues efforts to stabilise its operations after a period of declining performance. It has, so far, taken steps including:
- closing and converting loss-making stores;
- improving operational execution; and
- working to restore sales growth.
During the financial year, 40 loss-making supermarkets were closed or converted as part of efforts to optimise the store network. The company has also reported progress in reducing trading losses and improving like-for-like sales in its core supermarket business.
Saccawu said workers have remained committed despite difficult conditions and warned that the proposed changes could deepen financial strain on employees and their families.
Business Day
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