Pick n Pay has withdrawn its Section 189A retrenchment consultation after reaching an agreement with the South African Commercial, Catering and Allied Workers Union (SACCAWU), and has guided to a smaller headline loss for the six months to 30 August 2026. The retailer announced both on 22 October in a trading statement, as reported by SABC News. Full interim results follow on Monday, 26 October.
The company said the process “has been difficult for those affected” and praised the “constructive and respectful manner” of its engagement with labour, according to Daily Investor. The terms of the agreement with SACCAWU were not disclosed in the coverage we could find, and we found no separate union statement on the withdrawal.
How the dispute unfolded
Pick n Pay started the Section 189A process on 4 May 2026, a 60-day consultation on changes to store-based, non-management staff. SACCAWU said in its statement of 18 May that about 22,000 workers could be affected. It argued the notices gave workers two undesirable choices: accept retrenchment, or accept worse employment terms.
The union said the changes included cutting monthly working hours from 196 to 176, which it put at about R2,000 less in wages per employee, and ending transport for late and night shifts. Pick n Pay said the review excluded support office and management and was not meant to permanently reduce overall jobs. Chief executive Sean Summers described the existing structures as “materially above market norms”.
Labour Minister Nomakhosazana Meth intervened in June, and Pick n Pay put the planned retrenchments on hold. After a six-hour session on 3 June, the Department of Employment and Labour said the parties had agreed to return to the bargaining table with set timelines, Daily Investor reported.
The dispute did not end there. By late July, Business Day reported that SACCAWU had gone to the Labour Court for an urgent interdict and alleged that Pick n Pay had resumed the process after both sides agreed to suspend it. Pick n Pay said consultations facilitated by the CCMA would continue into July.
In its trading update of 6 August, the company said the Section 189A consultation was ongoing, that SACCAWU’s Labour Court application and CCMA referral were pending, and that “no final outcomes have been determined”. It described the proposed changes to terms and conditions as alternatives to retrenchment.
The loss forecast
For the 26 weeks to 30 August, Pick n Pay expects a headline loss per share of 38.85 to 44.83 cents. A year earlier the loss was 59.77 cents, so the range is a 25% to 35% improvement.
The company credited higher trading profit at Boxer, its discount chain, and a smaller trading loss in the core Pick n Pay business. Boxer’s turnover grew 7.2% in the 20 weeks to 19 July, according to the August update, when group turnover rose 2.7% and online sales grew 37.5%. Pick n Pay’s South African turnover fell 0.4% in that period, which the company attributed to closing or converting underperforming company-owned supermarkets.
The improvement follows a heavy base. Business Day reported that the core supermarket business made a trading loss of about R1 billion in the year to March, and that the target for breaking even has moved from FY2027 to FY2029. Pick n Pay is pursuing a multi-year turnaround that focuses on its product range, closing weaker stores and cutting costs, SABC reported.
What happens next
Woolworths executive Spencer Sonn becomes Pick n Pay chief executive on 1 February 2027, succeeding Sean Summers. The 26 October results should show the detail behind the loss forecasts and give more on the labour agreement.
For earlier coverage, read our report on Pick n Pay’s appointment of its CEO-designate, our overview of the leadership changes at Pick n Pay, SPAR and Woolworths, and our story on Boxer’s new chief executive.
