The Congress of South African Trade Unions (COSATU) expresses its gratitude to the Minister of Employment and Labour for effectively intervening in Pick n Pay’s mooted retrenchment of more than 22 000 workers.

In line with the Department’s expanded job preservation mandate, Minister Nomakhosazana Meth showcased her mediation skills in a six-hour marathon meeting between COSATU, its powerhouse Affiliate, the South African Commercial, Catering and Allied Workers Union (SACCAWU) and Pick n Pay executives on Wednesday.

COSATU and SACCAWU requested Meth’s intervention and held an initial meeting with her last Friday, after Pick n Pay issued a Section 189 notice on 4 May, thereby announcing its intention to retrench workers, some of whom have been with the company for more than 20 years, without first alerting their union – SACCAWU.

Section 189 of the Labour Relations Act enables employers to terminate workers based on operational requirements but also compels employers to consult as per the collective agreement. Pick n Pay failed to show SACCAWU the courtesy of serving it with the Section 189 notice first but instead issued it directly to individual workers without warning. Approached by the union, the retailer claimed it wanted to negotiate.

SACCAWU made it clear that negotiating while a Section 189 has been issued is akin to negotiating with a gun to one’s head; because once 60 days elapses from the date of issue, the employer can hand out notices to terminate. Consequently, SACCAWU was adamant Pick n Pay had to withdraw the Section 189.

The retailer was persuaded to withdraw, marking a major achievement for the engagement. The parties committed to return to the bargaining table to find positive sustainable solutions for the workers, the country’s retail sector and economy at large.     

COSATU thanks Minister Meth for her successful intervention and pledges its support for the negotiation process as well as ensuring all 22 000 jobs are preserved. With our dangerously high unemployment rate of 43.7%, we cannot afford to lose a single job and plunge families into poverty.

Issued by COSATU 

Zanele Sabela (COSATU Spokesperson)

Mobile: 079 287 5788 / 077 600 6639

Email: zaneles@cosatu.org.za