- Labor Minister Nomakhosazana Methe stepped down on Wednesday after Pick n Pay and unions asked him to help prevent mass job cuts.
- Pick n Pay filed legal layoff letters on May 4, starting a 60-day process that could end with more than 22,000 workers losing their jobs.
If you work at Pick n Pay, you're not out of a job just yet. But the fight to save it is still going on.
On May 4, Pick n Pay filed what is called a Section 189 notice. This is the legal paperwork that a company files when it wants to start cutting jobs. Once that notice goes in, the 60-day clock starts. During those 60 days, the company has to sit down with unions and talk about options before letting anyone go. More than 22,000 store employees are affected.
Labor Minister Nomakhosazana Methe stepped in on Wednesday after Pick n Pay CEO Shaun Summers and unions asked him to get involved. Both the parties sat in a room for six hours. When they came out, they agreed to continue the talks and set a deadline for the next round of discussions.
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The unions at the table are COSATU and SACCAWU. They are there to speak on behalf of the workers.
Pick n Pay has said it is not trying to cut jobs. The company says it wants to change the way it hires and pays workers, as the current system costs much more than other retailers. But the legal process he is using is the same process used for layoffs.
The department said the mood emerging from Wednesday's meeting was cautiously positive. The formal complaints process at the CCMA has been paused while negotiations continue.
Nothing has been finalized. The 60 day clock is still running.