PICK N PAY Namibia has announced that the retailer has retrenched a total of 229 employees.
This follows the announcement made earlier by the retailer on 16 June that approximately 500 employees would be retrenched.
“We are saddened that the current economic situation has necessitated this restructure. With a heavy heart we would like to thank all our employees for their services rendered to Pick n Pay Namibia as we bid them farewell and wish them all the best in their future endeavours”, Graeme Mouton wrote in a media statement released by the Ohlthaver & List Group.
Mouton stated that on 3 August 2020, Pick n Pay started conciliation proceedings with the Union at the Office of the Labour Commissioner before the Conciliator, following the referral of a dispute which was lodged by the Union at the Office of the Labour Commissioner on 10 July 2020.
The dispute was not resolved by the Conciliator and subsequently resulted in the company implementing collective terminations, effective 12 August 2020, in line with the provisions of the Labour Act, with reference to severance pay, accrued leave pay-out and pension fund benefits Mouton said.
In terms of Section 34(4) of the Labour Act, if after the negotiations and selections, the parties do not reach an agreement, either party may, within one week after the four weeks’ period referred to under paragraph 4.2 above, refer the matter to the Labour Commissioner, who must appoint a conciliator to resolve the dispute.
In terms of Section 34(5), the conciliator must attempt to resolve the dispute and arrange meetings necessary within four weeks as from the date (10 July 2020) of referring the dispute to the Labour Commissioner. At the conciliation meeting held on 03 August 2020, the company raised a preliminary point that the time periods for the conciliator to attempt to resolve the dispute will be prescribed (lapsed) on 07 August 2020 in terms of the Act. The conciliator, after consultation, confirmed the time periods as contemplated in section 34 (5) to be prescribed on 07 August 2020.
Mouton stated that Pick n Pay took into consideration that the employees were lawfully, collectively terminated as provided for in section 34.