Pick n Pay drops 22,000-worker pay plan. Deal details due 26 October

Pick n Pay has formally withdrawn the Section 189A consultation process that put the pay and working conditions of about 22,000 store workers on the table. The retailer told shareholders on Thursday, 22 October, that it had reached an agreement with the union Saccawu, its main labour partner (Pick n Pay SENS).

What the deal actually contains has not been made public yet. Pick n Pay says the details will come with its half-year results on Monday, 26 October 2026 (SENS).

What was Pick n Pay planning?

The retailer started the Section 189A process on 4 May 2026, opening a 60-day consultation on a new store labour model (Daily Investor). Section 189A is the part of the Labour Relations Act that governs large-scale retrenchment consultations by big employers.

Pick n Pay said at the time its aim was not to cut staff numbers but to bring labour costs in line with competitors. The proposals included reducing some salaries and benefits for store workers (The Citizen).

How did it get here?

• May 2026: Consultations start, affecting about 22,000 workers (Daily Investor).
• June 2026: Employment and Labour Minister Nomakhosazana Meth intervenes and the process is put on hold (Daily Investor).
• Later: The Labour Court strikes Saccawu's urgent application to stop the talks off the roll, finding it premature while consultations were still under way (The Citizen).
• 22 October 2026: Pick n Pay announces the agreement and withdraws the process (SENS).

What does this mean if you work at Pick n Pay?

The formal retrenchment consultation is over, so the Section 189A route is closed for now. The company has not said whether the agreement changes any pay, hours or benefits, so the full terms on Monday matter.

Union members should get the detail from their Saccawu shop steward or branch office rather than from social media. Pick n Pay acknowledged in its statement that the process had been difficult for those affected (SENS).

Is Pick n Pay still losing money?

Yes, but less. It expects a headline loss of between 38.85c and 44.83c a share for the 26 weeks to 30 August 2026, an improvement of 25% to 35% on the 59.77c loss a year earlier (SENS).

The group credits growth in trading profit at Boxer, its discount chain, and a smaller trading loss in the main Pick n Pay business. It also notes the percentage jump looks large partly because last year's headline loss was a relatively small R439 million (SENS). Pick n Pay is in a multiyear turnaround that includes closing underperforming stores and cutting costs (Business Day).

When are the results out?

Results go out on SENS at 7:05am on Monday, 26 October, with a presentation at 8:30am (SENS).