Pick n Pay Withdraws Store Job Cut Plan

The retailer reached a labour agreement to end a consultation process involving 22,000 potential job losses.

Updated on Oct. 22, 2026 in Unions

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Pick n Pay has officially withdrawn its Section 189A consultation process that previously put 22,000 store-based jobs at risk. The decision follows a successful agreement reached between the retailer and the South African Commercial, Catering and Allied Workers Union (SACCAWU).

Why it matters

The move settles a high-stakes labour dispute that sought to align the company's labour practices with those of its competitors. Government intervention proved critical in ensuring the retailer balanced its need for competitiveness with workforce stability.

The withdrawal cancels a 60-day consultation procedure that began on 4 May 2026. This process originally aimed to impact 22,000 positions across the retailer's store network.

The players

Pick n Pay

This major South African retailer operates a large chain of supermarkets and hypermarkets across the country.

SACCAWU

The South African Commercial, Catering and Allied Workers Union represents a significant portion of the retail labour force.

Nomakhosazana Meth

As the Minister of Employment and Labour, she oversees industrial relations and government intervention in major labour disputes.

COSATU

The Congress of South African Trade Unions is a powerful federation of labour unions that participates in national policy discussions.

The details

The reversal comes after Employment and Labour Minister Nomakhosazana Meth convened a six-hour engagement session in June 2026 involving leadership from COSATU, SACCAWU, and Pick n Pay. The agreement effectively ends the direct Section 189 notices previously issued to individual employees.

4 May 2026: Pick n Pay initiated the Section 189 process.
June 2026: Labour Minister Nomakhosazana Meth intervened in the dispute.
3 June 2026: A six-hour engagement session was held between union and retail leadership.
22 October 2026: Pick n Pay announced the formal withdrawal of the consultation process.

Political Context

Opposition parties and labour advocates have long pushed for stricter oversight of large-scale retrenchments under the Labour Relations Act Section 189A. This development highlights the growing influence of government mediation in preventing mass job losses within the retail sector.

The withdrawal provides immediate job security to 22,000 employees who were facing potential retrenchment. Shoppers can expect store operations to continue without the disruption that a prolonged labour dispute might have caused.

The takeaway

This outcome demonstrates the effectiveness of tripartite negotiations between the state, unions, and corporations in resolving labour conflicts. Workers should monitor future company announcements for changes to labour models that may affect daily responsibilities.