---
title: "About 22,000 Pick n Pay Store Workers Wait for Deal Terms…"
canonical: "https://www.metaintro.com/blog/pick-n-pay-22000-workers-restructuring-withdrawn"
language: "en"
author: "drashtigarach"
published: "2026-10-26T11:30:23.000Z"
modified: "2026-10-26T11:30:23.000Z"
---

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# About 22,000 Pick n Pay Store Workers Wait for Deal Terms After the Retailer Withdraws Its Section 189A Process

Pick n Pay withdrew its Section 189A process covering about 22,000 store workers after a SACCAWU deal. Here is what was on the table and what comes next.

[![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach)

[October 26, 2026](/blog/archive/2026/10)13 min read

![A supermarket checkout conveyor belt with shopping baskets and a cashier working at the till in the background](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/pick-n-pay-22000-workers-restructuring-withdrawn-hero.jpg)

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[Pick n Pay has formally withdrawn the consultation process it started under Section 189A of the Labour Relations Act](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK) after reaching an agreement with the South African Commercial, Catering and Allied Workers Union (SACCAWU), its primary labour partner. The process covered [about 22,000 store workers and could have cut their pay and benefits or led to dismissals](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/). For those workers, the [Section 189A process that opened on May 4](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/) is over. The [H1 FY27 results](https://www.picknpayinvestor.co.za/pdf/investor-centre/results-and-presentations/2026/interim-results-2026/pikfy-27-h1.pdf) describe the outcome only as [a simplified and more competitive store labour model that supports more flexible and effective labour scheduling](https://www.picknpayinvestor.co.za/pdf/investor-centre/results-and-presentations/2026/interim-results-2026/pikfy-27-h1.pdf), with no pay or hours terms. For [Metaintro](https://www.metaintro.com) readers in retail, this story is less about job losses and more about how a loss-making grocer tried to change pay and conditions, and how a union pushed back.

## What Did Pick n Pay Actually Announce?

Pick n Pay announced the deal in [a trading statement on the JSE's news service that also covered the "conclusion of store labour agreement"](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK). The agreement with [SACCAWU](https://www.ewn.co.za/pick-n-pay-drops-proposed-22-000-job-cuts-after-reaching-deal-with-saccawu/) marks, in the company's words, [a successful conclusion to the consultation process](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK).

Pick n Pay has [formally withdrawn the consultation process initiated in terms of Section 189A](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK), a process [largely associated with retrenchments](https://businesstech.co.za/news/business/881096/u-turn-for-pick-n-pay-in-south-africa/).

The statement does not list what was agreed. [The company will provide further information as part of its H1 FY27 results publication](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK), which Pick n Pay [plans to release on SENS at 7:05am on Monday, 26 October 2026, with a results presentation at 8:30am](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK).

## Which Workers Were Covered by the Process?

The process applied to [store-based employees in Pick n Pay's Non-Management Bargaining Unit](https://saccawu.org.za/saccawu-prepares-fight-against-pick-n-pay-restructuring/). Pick n Pay said the review [applied only to certain store-based employees and excluded support office staff and management structures](https://saccawu.org.za/saccawu-prepares-fight-against-pick-n-pay-restructuring/).

The consultation affected [about 22,000 store-based, nonmanagement employees](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/).

## What Changes to Pay and Conditions Were on the Table?

SACCAWU said the proposals included [scrapping the Sunday pay premium for full-time staff, rostering full-time workers on weekends, ending transport for employees whose shifts finish after public transport stops running, withdrawing subsidized meals and the annual 13th-cheque bonus, and cancelling older agreements with the union](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/).

SACCAWU highlighted [a reduction in monthly working hours from 196 to 176 hours, which it claims could reduce workers' salaries by about R2,000 a month](https://www.timeslive.co.za/news/south-africa/2026-05-11-union-says-pick-n-pay-restructuring-threat-puts-22000-jobs-at-risk/). Other items on its list were [removing negotiated benefits for part-time employees and scrapping an existing flexibility and multi-skilling agreement](https://www.timeslive.co.za/news/south-africa/2026-05-11-union-says-pick-n-pay-restructuring-threat-puts-22000-jobs-at-risk/).

By July, the disputed items still included [changes to guaranteed working hours, the removal of the 13th pay cheque, attendance bonuses and transport provided to employees working early and late shifts](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/). The union's position was that [those conditions are protected by collective agreements and should be negotiated through established bargaining structures](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/).

> Workers cannot continue to bear the burden of corporate restructuring and business challenges, while executives and shareholders are protected, SACCAWU said in May, according to [the TimesLIVE report on the union statement](https://www.timeslive.co.za/news/south-africa/2026-05-11-union-says-pick-n-pay-restructuring-threat-puts-22000-jobs-at-risk/).

## Was Pick n Pay Trying to Cut Jobs or Cut Pay?

Pick n Pay said it [was not seeking to retrench workers but wanted to change their working conditions to keep jobs and return the business to profit](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/). In July the retailer said ["our aim remains not to lose jobs"](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/), and that it would extend the CCMA-facilitated consultation during that month.

The union read the same notices differently. SACCAWU said the notices [effectively give them two undesirable choices, one is to accept retrenchments, or as an alternative to retrenchments, to accept the downward variation of their negotiated conditions of employment](https://saccawu.org.za/saccawu-prepares-fight-against-pick-n-pay-restructuring/).

The fight was over the method as much as the content. SACCAWU criticised the retailer for [referring the matter to the CCMA under section 189A instead of engaging through established internal bargaining structures](https://www.businessday.co.za/companies/2026-05-12-union-accuses-pick-n-pay-of-shifting-turnaround-burden-onto-workers/). [The retailer wanted to change some of the workers' working conditions, including reducing salaries and other benefits](https://www.citizen.co.za/business/pick-n-pay-shelves-plan-to-cut-salaries-benefits-of-22-000-workers/), The Citizen reported.

## Why Did Pick n Pay Say It Needed the Changes?

Chief executive Sean Summers argued that the retailer's employment terms were ["significantly more generous"](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/) than those of its competitors. In May he said the company ["can no longer sustain structures that are materially above market norms," especially while trying to return the business to profitability](https://saccawu.org.za/saccawu-prepares-fight-against-pick-n-pay-restructuring/).

The retailer also argued its labour model no longer matched how people shop, [leaving stores overstaffed during quieter trading periods while struggling to match demand at peak times](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/).

The finances explain the pressure. The core supermarkets posted [a trading loss of R1bn for the year ended March, and as of July management expected the business to reach break-even only in the 2029 financial year](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/). The group was [declared technically insolvent in 2024](https://businesstech.co.za/news/business/881096/u-turn-for-pick-n-pay-in-south-africa/), and the store base has shrunk, with [company-owned stores falling to 992 from 1,007 and franchise stores falling to 620 from 722 over the three years to March 2026](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/).

## What Had Pick n Pay Already Cut Before Turning to Store Staff?

Summers listed [changes to its holding structure, the Boxer listing, store closures, support office restructuring and salary freezes for support office staff](https://saccawu.org.za/saccawu-prepares-fight-against-pick-n-pay-restructuring/) as measures already taken over the previous two years.

By May, [40 loss-making supermarkets had been closed or converted during the financial year](https://www.businessday.co.za/companies/2026-05-12-union-accuses-pick-n-pay-of-shifting-turnaround-burden-onto-workers/) as part of efforts to optimise the store network. Over a longer stretch Boxer grew, reaching [576 stores from 477 in the three years to March 2026](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/).

Summers, [a former chief executive who returned to the job in 2023, led a rescue that included a R4 billion rights offer](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/) and the listing of Boxer on the Johannesburg Stock Exchange in November 2024.

Summers framed the store review as a way to protect work rather than shed it. His stated priority was [to protect jobs wherever possible while building a more sustainable business](https://saccawu.org.za/saccawu-prepares-fight-against-pick-n-pay-restructuring/), with the goal that the company could grow again, open more stores and keep providing work.

## What Did the Union Threaten if Talks Failed?

SACCAWU made clear in May that it was ready to escalate. It warned that [industrial action could follow if consultations fail to produce an acceptable outcome](https://www.timeslive.co.za/news/south-africa/2026-05-11-union-says-pick-n-pay-restructuring-threat-puts-22000-jobs-at-risk/), and it was prepared to use ["all organisational and legal mechanisms"](https://www.timeslive.co.za/news/south-africa/2026-05-11-union-says-pick-n-pay-restructuring-threat-puts-22000-jobs-at-risk/) to defend workers.

It also asked the state to step in. 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](https://www.timeslive.co.za/news/south-africa/2026-05-11-union-says-pick-n-pay-restructuring-threat-puts-22000-jobs-at-risk/).

The union's broader argument was about who carries the cost of a turnaround. It blamed past leadership, arguing that [Pick n Pay's previous two CEO appointments had driven the company down from a status of healthy profitability and market share](https://www.businessday.co.za/companies/2026-05-12-union-accuses-pick-n-pay-of-shifting-turnaround-burden-onto-workers/), and that [workers should not be made to carry the cost of the turnaround](https://www.businessday.co.za/companies/2026-05-12-union-accuses-pick-n-pay-of-shifting-turnaround-burden-onto-workers/).

## How Did the Dispute Unfold Between May and October?

The consultation [opened on May 4](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/) and SACCAWU said employees received [Section 189A notices through the Commission for Conciliation, Mediation and Arbitration](https://www.timeslive.co.za/news/south-africa/2026-05-11-union-says-pick-n-pay-restructuring-threat-puts-22000-jobs-at-risk/). [COSATU, the trade federation](https://saccawu.org.za/saccawu-prepares-fight-against-pick-n-pay-restructuring/), backed SACCAWU's resistance.

Employment and Labour Minister Nomakhosazana Meth [intervened in June and brought both sides back to the table](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/). SACCAWU deputy general secretary Jerry Mmoneri recalled that [both parties agreed to suspend the official consultation process and continue discussions via a bargaining forum](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/). He said the union had [submitted proposals that sought to accommodate the company's operational challenges](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/), but alleged that the retailer later resumed the section 189A process.

The union also went to court. [The Labour Court struck an application by the union from its roll](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/), ruling that it was premature while consultations were still under way. In the judgment, Judge Edwin Tlhotlhalemaje found that [it is not for the Court to grant relief based on speculation and predictions on the possible outcome of the consultation process](https://www.citizen.co.za/business/pick-n-pay-shelves-plan-to-cut-salaries-benefits-of-22-000-workers/).

The process ended in October with [an agreement announced to shareholders](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK).

## What Does Section 189A Mean for Workers in South Africa?

Section 189A is the large-scale version of the retrenchment rules, and it [applies to employers that employ 50 or more employees](https://ceosa.org.za/large-scale-retrenchments-and-what-it-entails/) and intend to retrench a set number of staff. The thresholds rise with workforce size, at [10 employees if the employer employs up to 200 employees, 20 if it employs more than 200 but no more than 300, 30 if it employs more than 300 but no more than 400, 40 if it employs more than 400 but no more than 500, and 50 if it employs more than 500](https://ceosa.org.za/large-scale-retrenchments-and-what-it-entails/). The rules also apply if [the planned number, together with employees retrenched in the 12 months before the Section 189(3) notice, is equal to or greater than the relevant number](https://ceosa.org.za/large-scale-retrenchments-and-what-it-entails/). Where the CCMA facilitates, [the facilitator has a minimum of 60 days from the section 189(3) notice and must hold at least 4 facilitation meetings](https://ceosa.org.za/large-scale-retrenchments-and-what-it-entails/).

The section [was inserted into the LRA in 2002](https://www.cliffedekkerhofmeyr.com/en/news/publications/2026/South-Africa/Employment-Law/employment-law-alert-1-june-2026-conciliation-after-failed-facilitation-the-constitutional-court-clarifies-the-route-to-the-labour-court-in-large-scale-retrenchments) to bring a facilitated consultation process and a right to strike over retrenchment. Where a facilitator has been appointed and 60 days have passed since the section 189(3) notice, the employer may issue notices of termination, and workers can then [either give notice of a strike or refer a dispute about whether there is a fair reason for the dismissal to the Labour Court](https://www.cliffedekkerhofmeyr.com/en/news/publications/2026/South-Africa/Employment-Law/employment-law-alert-1-june-2026-conciliation-after-failed-facilitation-the-constitutional-court-clarifies-the-route-to-the-labour-court-in-large-scale-retrenchments). Where no facilitator is appointed, [section 189A(8) substitutes a 30-day consultation period followed by a 30-day conciliation period, also totaling 60 days, before the employer may issue dismissal notices](https://www.cliffedekkerhofmeyr.com/en/news/publications/2026/South-Africa/Employment-Law/employment-law-alert-1-june-2026-conciliation-after-failed-facilitation-the-constitutional-court-clarifies-the-route-to-the-labour-court-in-large-scale-retrenchments).

A Constitutional Court ruling, covered by lawyers in June, held that after a failed facilitation, [a dismissed employee or trade union may proceed directly to the Labour Court](https://www.cliffedekkerhofmeyr.com/en/news/publications/2026/South-Africa/Employment-Law/employment-law-alert-1-june-2026-conciliation-after-failed-facilitation-the-constitutional-court-clarifies-the-route-to-the-labour-court-in-large-scale-retrenchments).

## What Does Pick n Pay Expect for the First Half?

The same statement carried better numbers. Pick n Pay expects its [headline loss to improve by between 25% and 35%, from 59.77 cents a share in the first half of the previous financial year to between 38.85 cents and 44.83 cents](https://iol.co.za/business/economy/2026-10-23-pick-n-pay-reaches-union-deal-as-projected-losses-narrow/). The expected improvement reflects [Boxer delivering trading profit growth and the Pick n Pay segment delivering a moderately reduced trading loss](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK). The final results put the [Group Headline loss reduced by 31.9% to R299 million](https://www.picknpayinvestor.co.za/pdf/investor-centre/results-and-presentations/2026/interim-results-2026/pikfy-27-h1.pdf).

The company itself flagged a caveat. The large percentage is [partially a function of the relatively small absolute H1 FY26 headline loss (R439 million)](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK), and the forecasts [have not been reviewed by the group's external auditors](https://iol.co.za/business/economy/2026-10-23-pick-n-pay-reaches-union-deal-as-projected-losses-narrow/).

[The shares rose 4.8% in Johannesburg trading on Friday morning](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/). Leadership is also changing, as Summers [will hand over to Spencer Sonn, a former head of Woolworths' food business, on Feb. 1, 2027](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/).

> The Company recognises that the consultation process has been difficult for those affected and acknowledges the constructive and respectful manner in which our labour partners and employee representatives engaged throughout the process, according to [the Pick n Pay trading statement](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK).

## What This Means for Retail Workers, and What Should You Do Next?

Our take is that the withdrawal settles the process question but leaves the pay question open. The withdrawal ends the [Section 189A route that SACCAWU said left workers choosing between retrenchment and lower conditions](https://saccawu.org.za/saccawu-prepares-fight-against-pick-n-pay-restructuring/). It does not tell anyone what their payslip will look like, since [the half-year results](https://www.picknpayinvestor.co.za/pdf/investor-centre/results-and-presentations/2026/interim-results-2026/pikfy-27-h1.pdf) give no pay terms. The pressures behind the plan have not gone away either, with the Pick n Pay segment still posting [a moderately reduced trading loss](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK) and, as of July, [break-even pushed out to the 2029 financial year](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/).

Unions elsewhere are also pushing on pay and jobs, from [a union report on digital shelf labels and grocery jobs](https://www.metaintro.com/blog/digital-shelf-labels-grocery-jobs-at-risk) to [the pay raise target set by Japan's biggest union group](https://www.metaintro.com/blog/japan-rengo-6-percent-wage-target-2027).

- **Ask your shop steward for the detail.** The [H1 FY27 results](https://www.picknpayinvestor.co.za/pdf/investor-centre/results-and-presentations/2026/interim-results-2026/pikfy-27-h1.pdf) say the agreement [delivers the flexibility, efficiency and market alignment](https://www.picknpayinvestor.co.za/pdf/investor-centre/results-and-presentations/2026/interim-results-2026/pikfy-27-h1.pdf) the company sought, but they do not set out individual terms.
- **Check the items that drive your pay.** Guaranteed working hours, the 13th cheque, attendance bonuses and early and late-shift transport were [among the items still in dispute in July](https://www.businessday.co.za/companies/2026-07-24-news-analysis-pick-n-pays-delayed-recovery-hits-labour-roadblock/), so they are the lines to compare against your current contract.
- **Know your rights if a process restarts.** If a new large-scale retrenchment process starts, [the Section 189A consultation period of a minimum of 60 days before a notice of termination](https://ceosa.org.za/large-scale-retrenchments-and-what-it-entails/) still applies, with or without a facilitator.
- **Keep your options open.** If the final terms leave you earning less, comparing outside offers is a practical way to see what your skills are worth.

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## People Also Asked

### Q: Is Pick n Pay cutting jobs?

A: Pick n Pay said it [was not seeking to retrench workers but wanted to change their working conditions](https://www.billionaires.africa/2026/10/23/ackerman-familys-supermarket-giant-pick-n-pay-scraps-pay-cuts-for-22-000-workers/), and it has now [formally withdrawn the Section 189A consultation process](https://www.sharenet.co.za/v3/sens_display.php?tdate=20261022170000&seq=65&scode=PIK) after an agreement with SACCAWU.

### Q: What did SACCAWU say Pick n Pay wanted to change?

A: The union listed [cutting monthly hours from 196 to 176, which it said equals a R2,000 reduction in wages per employee](https://saccawu.org.za/saccawu-prepares-fight-against-pick-n-pay-restructuring/), along with [withdrawing the 13th cheque, ending additional Sunday pay and removing transport for late-night shifts](https://www.timeslive.co.za/news/south-africa/2026-05-11-union-says-pick-n-pay-restructuring-threat-puts-22000-jobs-at-risk/).

### Q: Have the terms of the Pick n Pay and SACCAWU deal been released?

A: Not in detail. Pick n Pay's [H1 FY27 results](https://www.picknpayinvestor.co.za/pdf/investor-centre/results-and-presentations/2026/interim-results-2026/pikfy-27-h1.pdf) say it [successfully reached agreement on the restructure of the store labour model](https://www.picknpayinvestor.co.za/pdf/investor-centre/results-and-presentations/2026/interim-results-2026/pikfy-27-h1.pdf) during October 2026, but they do not list pay or hours terms.

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