Retailer Pick n Pay said it was cutting about 25% of its workforce or roughly 500 jobs in light of plans to restructure the company "aimed at reversing losses and setting the business on the path of sustainability".
Pick n Pay managing director Graeme Mouton said the employees, through the shop stewards and the union, have rejected the company's offer.
The options on the table were that the employees agree to sacrifice the annual salary increase and forgo a 13th cheque this year, but that going forward, the 13th cheque would be converted to a performance-based bonus whereby bonuses would only be paid once the company is profitable.
Last year, both parties agreed that, as effective of 1 July 2019, about 1 830 Pick n Pay Namibia employees would receive a wage increment of 6% in the first year (1 July 2019 - 30 June 2020), 6.5% increase in the second year (1 July 2020 - 30 June 2021) and 7% in the third year (1 July 2021 - 30 June 2022) for both permanent employees as well as permanent variable time (PVT) employees.
Pick n Pay said that due to the prolonged economic downturn and reduced consumer disposable income, the company has experienced marginal to negative turnover growth over the past five years.
