Pick n Pay trims workforce

18 June 2020 | Business

Pick n Pay announced today that it will be restructuring its operations in an effort to set the business on a path to sustainability.

The 100% Namibian-owned entity that employs 1931 people at its 22 retail stores in most major towns in Namibia and is subsidiary of the Ohlthaver & List (O&L) Group, said the retrenchment will result in more than 500 Namibians losing their jobs.

Pick n Pay managing director Graeme Mouton said that due to the prolonged economic downturn and reduced consumer disposable income, the company experienced marginal to negative turnover over the past five years. “Furthermore, while the recession has steadily eroded turnover, costs have increased above inflation on all fronts, resulting in a decline in profit, leading to losses over the last two years. Covid-19 and lockdown only compounded an already dire situation, necessitating business realignment in order to secure the business and jobs into the future.”

He said that a restructuring exercise aimed at reversing losses and setting the business on the path to sustainability was initiated.

Mouton said that in addition to various cost cutting measures, the company also offered employees voluntary separation packages and early retirement options.

“However, the uptake on these offers were low, resulting in extensive dialogue through which the company presented the employees with the option of retrenchment or alternative measures aimed at reducing costs without job losses.”

He explained that in an attempt to avoid retrenchments, Pick n Pay engaged the Namibia Food & Allied Workers Union (NAFAU), with which the company has a recognition agreement, to propose various alternatives to retrenchment in March 2020.

The following proposals were presented to the union leaders for consideration:
• That employees agree to forgo the annual salary increase as well as a 13th cheque this year, but that going forward, the 13th cheque would be converted to a performance-based bonus whereby bonuses will only be paid once the company is profitable;
• That the cash card discount benefit which Pick n Pay employees enjoy, be reduced; and
• That Sundays be included in the normal 6-day working week, calculated monthly instead of weekly as is currently the case.

According to Mouton, all efforts were made to identify alternative measures to save the business while guarding as many jobs as possible.

“Various rounds of discussions with the union and shop stewards were unfortunately unsuccessful in finding an alternative to retrenchments. We also considered the proposals presented by the union, however these options did not deliver the cost-savings required to sustain the business. The employees, through the shop stewards and union, regrettably rejected the company’s proposal, opting to rather follow the retrenchment route.”

Similar News

 

Top five risks for business in 2021

4 days ago - 17 January 2021 | Business

Covid-19, emerging digital threats, climate change and the US-China relationship are among the Top 5 risks for business in 2021, according to Control Risks (www.ControlRisks.com),...

Local flavours fill CBD

4 days ago - 17 January 2021 | Business

Swakopmund • [email protected] Hafeni Traditional Bistro recently opened its’ doors in Swakpmund’s central business district.Entrepreneur Heinrich Hafeni Nghidipaya says the bistro caters for those...

Manica pumping massive funds into modern technology

1 week ago - 14 January 2021 | Business

Walvis Bay ∙ [email protected] Manica Group Namibia has recently invested in an advanced mobile hopper and bagging system, the first of its kind in...

TransNamib suspends passenger services countrywide

1 week ago - 12 January 2021 | Business

TransNamib has suspended all its passenger services following the derailment of a train in southern Namibia. The train derailed on a bridge some 45...

Vehicle industry’s resilience applauded

1 week ago - 11 January 2021 | Business

Dealerships and salespeople in the motor vehicle industry were recognised for their commitment, loyalty, and support at Bank Windhoek’s annual Selekt Sales Awards ceremony hosted...

Shoprite strike enters third week

1 week ago - 10 January 2021 | Business

Swakopmund • [email protected] Shoprite employees cheered after the high court in Windhoek ruled in favor of their trade union Nafau in its application against the...

Henties inwoner stig besigheidsforum

2 weeks ago - 06 January 2021 | Business

Hentiesbaai • [email protected] Die Hentiesbaaise sakevrou Daleen Agenbag hoop om deur middel van ’n besigheidsforum ’n verskil op die aftreedorp te maak. “Ons...

Natural Diamond Manufacturer sparkles with opportunity

3 weeks ago - 30 December 2020 | Business

Of Namibia’s 2.5 million population, more than half are unemployed and over 100 000 persons live with some form of disability which puts them at...

King Charcoal to expand

3 weeks ago - 30 December 2020 | Business

Walvis Bay • [email protected] The previous Walvis Bay municipal council decided that an additional two hectares of Farm 38 can be leased to...

Geniet rus en vrede hier

3 weeks ago - 29 December 2020 | Business

As jy van die daaglikse gewoel wil ontsnap, hou koers na Klein Eden Guest Farm, wat 28 km vanaf Omaruru op die D2328 geleë is.Die...

Latest News

Hoe pandemies eindig

5 hours ago | Health

Swakopmund • [email protected] Ná die rampspoedige jaar is die geduld vir ’n pandemie maar min en die mensdom is meer as gereed om hierdie...

Designer branches out

5 hours ago | Art and Entertainment

Walvis Bay • [email protected] Walvis Bay-based designer Chanté Bock has decided that 2021 will be the year in which she embarks on her solo...

Shake a can for hope

5 hours ago | Health

Swakopmund • [email protected] A Shake a Can for World Cancer event will be held in Swakopmund on 5 February, the Cancer Association of Namibia’s...

CAN screening to save lives

18 hours ago | Health

The Cancer Association of Namibia (CAN) welcomes their outreach program to the Erongo region this week. “Breast and cervical cancer are the main types of...

Shoprite workers displeased with police...

1 day - 20 January 2021 | Local News

Swakopmund • [email protected] Approximately 50 aggrieved workers of the Shoprite Group Namibia marched from the NANWU offices to the Swakopmund police station today where...

Triathletes to shine at the...

1 day - 20 January 2021 | Sports

Swakopmund • [email protected] More than 100 athletes are expected to compete in the first-ever triathlon hosted at Platz Am Meer in Swakopmund this...

Elderly man plummets to death

1 day - 20 January 2021 | Crime

George Haradoeb (72) died after he fell from a ladder while painting a building in John-Ya Otto Street in the industrial area of Swakopmund on...

Stay vigilant when using free...

1 day - 20 January 2021 | Banking

The use of free public Wi-Fi networks and hotspots in public places calls for caution when accessing your banking or managing finances on laptops or...

State hospitals in a ‘sorry...

1 day - 20 January 2021 | Health

Swakopmund • Erwin LeuschnerThree regional council members of the IPC in the Erongo region are dismayed by the “state of decline” of the two state...

Load More