Pick n Pay drops plan affecting 22,000 staff. What to watch Monday

Pick n Pay has formally withdrawn its Section 189A consultation process after reaching an agreement with SACCAWU, its main union, the retailer told shareholders on 22 October 2026 (SENS via Moneyweb). The process could have affected about 22,000 store-based workers (EWN).

The terms of the deal have not been made public. Pick n Pay says more detail will come with its interim results on Monday, 26 October 2026 (SENS via Moneyweb).

What was Pick n Pay trying to change?

Pick n Pay started the process in May as part of its turnaround plan, saying its store labour model had to change to cut costs and compete better (EWN).

According to its annual financial statements, the talks covered non-managerial, store-based employees in the bargaining unit. The issues on the table included (SA Business Lens):

• guaranteed hours by job category
• shift scheduling and flexibility
• leave above the legal minimum
• certain benefits

Pick n Pay has maintained that the aim was not to cut jobs but to change working conditions and get back to profit (The Citizen). Section 189A of the Labour Relations Act is the legal process large employers must follow when they consider retrenching big numbers of staff, which is why the talks were framed as a possible retrenchment.

Does this mean no Pick n Pay jobs will be lost?

Not necessarily. The announcement does not say how many jobs are protected and does not guarantee against future job losses (SA Business Lens).

What it does mean is that the Section 189A process started in May is over. Workers will need the written agreement to know whether their hours, shifts, leave or benefits change, and from when.

How did it get here?

SACCAWU opposed the proposals from the start, and the Employment and Labour Minister stepped in during June to help the parties negotiate (EWN).

The union also went to the Labour Court to stop the talks. The court struck the urgent application from the roll, with Judge Edwin Tlhotlhalemaje finding it was "premature" because consultations were still going on (The Citizen).

In its statement, Pick n Pay said it recognised the process "has been difficult for those affected" (SENS via Moneyweb).

How is Pick n Pay doing financially?

Still loss-making, but less so. It expects a headline loss of between 38.85 and 44.83 cents per share for the 26 weeks to 30 August 2026, compared with 59.77 cents a year earlier. That is 25% to 35% narrower (CNBC Africa/Reuters).

The improvement came from higher trading profit at its discount chain Boxer and a smaller loss in the core Pick n Pay supermarkets (CNBC Africa/Reuters).

Woolworths executive Spencer Sonn takes over as CEO from Sean Summers on 1 February 2027 (CNBC Africa/Reuters).

When will workers get the details?

Pick n Pay will publish its half-year results on SENS at 7:05 on Monday, 26 October 2026, with a presentation at 8:30. The company says further information on the labour agreement will be included (SENS via Moneyweb).

Staff with questions about how the deal affects them should speak to their SACCAWU shop steward or store HR once the terms are released.