South Africa: Pick 'n Pay and Unions Go Back to the Table As 22,000 Jobs Hang in the Balance

By Anita Dangazele

Labour Minister Nomakhosazana Meth stepped in on Wednesday after Pick n Pay and unions asked her to help stop mass job cuts.

Pick n Pay filed legal retrenchment papers on 4 May, starting a 60-day process that could end with over 22,000 workers losing their jobs.

If you work at Pick n Pay, your job is not gone yet. But the fight to save it is still going on.

Pick n Pay filed what is called a Section 189 notice on 4 May. That is the legal paperwork a company files when it wants to start cutting jobs. Once that notice goes in, a 60-day clock starts. During those 60 days, the company has to sit down with unions and talk about alternatives before anyone is let go. More than 22,000 store workers are affected.

Labour Minister Nomakhosazana Meth stepped in on Wednesday after both Pick n Pay CEO Sean Summers and the unions asked her to get involved. The two sides sat in a room for six hours. When they came out, they had agreed to keep talking, with deadlines set for the next round of discussions.

The unions at the table are COSATU and SACCAWU. They are there to speak for workers.

Pick n Pay has said it is not trying to cut jobs. The company says it wants to change how workers are hired and paid, because current arrangements cost too much compared to other retailers. But the legal process it is using is the same one used for retrenchments.

The department said the mood coming out of Wednesday's meeting was cautiously positive. The formal complaint process at the CCMA has been put on hold while talks continue.

Nothing has been finalised. The 60-day clock is still running.

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