The South African Commercial, Catering and Allied Workers Union (SACCAWU) has raised serious objections to Pick n Pay’s ongoing Section 189A consultation process, contending that the retailer’s restructuring efforts disproportionately affect frontline employees while leadership compensation remains intact.
Brenita Cloete, First Deputy President of SACCAWU, stated that the union’s central grievance is that Pick n Pay is shifting financial pressures onto vulnerable workers despite executives continuing to receive comprehensive remuneration packages. “It seems like they have no proper strategy to actually get the business out of the problem that we are finding ourselves in,” Cloete said.
Pick n Pay has publicly maintained that its turnaround initiatives are showing progress but asserts that its labor cost structure remains misaligned with industry peers. This position prompted the company to initiate a Section 189 consultation aimed at modifying its employment framework—a move that has drawn sharp criticism from organized labor.
Cloete pointed to previously announced initiatives that, according to the union, were never fully executed. She referenced a multis-skilling agreement signed in 2022, which was intended to enable frontline staff to perform duties across multiple departments. However, Cloete noted that the company later acknowledged its internal systems could not support scheduling employees for secondary roles, rendering the agreement ineffective. “They made the union sign this agreement… but their system is unable to schedule employees for secondary jobs,” she explained.
On the matter of labor cost competitiveness, Cloete stated that SACCAWU’s negotiating team repeatedly requested comparative data to evaluate Pick n Pay’s claims against rival retailers. She said the company was unable to supply this information. Cloete added that, based on her understanding, competitors such as Woolworths offer higher hourly wage rates than Pick n Pay.
While Pick n Pay has implemented a freeze on executive salary increases, Cloete argued this measure does not address existing high compensation levels. She referenced substantial exit packages provided to former chief executives even during periods of weak business performance. Cloete also questioned the tangible outcomes of current CEO Sean Summers’ strategy of hiring for “critical skills,” noting that the business has recorded a R2 billion loss both prior to and during his leadership tenure. “Where is the strategy not really working? And why must workers, the vulnerable workers, take the brunt for that strategy not working?” she asked.
Cloete expressed concern about perceived contradictions in leadership messaging. While Sean Summers has stated publicly that retraining workers is not part of the company’s approach, he has also circulated internal communications expressing care for staff. “How do you love people when you want to destroy their livelihood?” Cloete questioned.
The union has advocated for transparent, good-faith negotiations where management shares comprehensive financial information to enable collaborative problem-solving. Cloete stated that Pick n Pay has provided only fragmented data, limiting the union’s capacity to contribute meaningfully. She illustrated this with the multis-skilling agreement: after the union agreed to consider revised terms affecting 196 hourly and monthly-paid employees, the company reportedly shifted to proposing a 176-hour contract structure. When the union sought a fresh mandate on this basis, Cloete said the company further expanded the proposal to apply the 176-hour model to all staff—a change she characterized as moving the goalposts.
SACCAWU has affirmed its commitment to continued engagement with Pick n Pay throughout the consultation process, emphasizing the protection of workers’ livelihoods as its priority.