Pick n Pay has announced plans for major changes to store staff working conditions and pay through a section 189A process. Meanwhile, its spun-off discount chain Boxer posted strong maiden results after listing on the JSE.
Pick n Pay CEO Sean Summers described the labour adjustments as an important part of the company’s turnaround. The retailer aims to reduce Sunday premium pay, make weekend shifts mandatory and cut guaranteed monthly hours for full-time staff from 196 to 130.
The South African Commercial, Catering and Allied Workers Union, which represents about 60 percent of the 22,000 affected workers, called the move a bombshell and accused the company of acting in bad faith without prior consultation.
In contrast, Boxer CEO Marek Masojada reported that the discount chain opened 51 net new stores in the past year, bringing its total to 576 outlets. Boxer created 3,400 jobs, lifted sales 12.3 percent and reduced shelf prices by 1.2 percent while the broader market rose 4.4 percent.
