Pick n Pay Namibia, a subsidiary of the Ohlthaver & List (O&L) Group, recently concluded wage negotiations with the Namibia Food and Allied Workers Union (Nafau). 

The new one-year substantive agreement is effective from 1 July 2024 to 30 June 2025.

It includes an increase in basic salary for bargaining unit employees, who make up over 70% of Pick n Pay Namibia’s approximately 1698-strong workforce. 

A company statement noted this commitment to fair and competitive compensation reflects its dedication to the well-being and security of its staff.

The retailer recently announced the termination of its franchise agreement with Pick n Pay (South Africa), and stated that the change will only come into effect after July 2025. 

Graeme Mouton, managing director of Pick n Pay Namibia, expressed pride in the collaborative spirit demonstrated during the negotiations. 

“At Pick n Pay Namibia, our priority is to serve our customers with excellence, while supporting the local economy. This agreement reflects our commitment to our workforce, who are the backbone of our operations,” he said. 

He further emphasised the importance of looking after the workforce, especially in challenging economic times. 

“The current global economic challenges, including inflation and increased living costs, underscore the importance of our role in the community. We are dedicated to ensuring that our employees feel valued and secure, as they are instrumental in achieving our vision of a sustainable and prosperous future,” he said.

Lister Tawana, central regional coordinator for Nafau, added: “The agreement reached with Pick n Pay Namibia is a testament to the company’s genuine commitment to its employees. In the retail sector, particularly during challenging times, it is encouraging to see a business prioritising the well-being and development of its workforce. We are grateful for the leadership’s recognition of the value each employee brings to the company, and the positive impact this has on their lives”. 

The Pick n Pay Namibia statement added that the company remains steadfast in its commitment to being an authentic brand. 

“With a renewed focus on local growth and innovation, the leadership team is excited about the opportunities that lie ahead. By nurturing a motivated and engaged workforce, Pick n Pay Namibia is poised to continue delivering exceptional service, and contributing positively to the Namibian economy,” the statement added.  

The O&L Group clarified that it does not intend to close any retail outlets, and operations will continue as usual, despite it terminating a 27-year franchise agreement with the massive South African retailer. 

This is according to the O&L Group’s executive chairman, Sven Thieme. 

Responding to recent New Era queries, O&L Group’s executive chairman Thieme emphatically stated that the well-being of O&L’s employees remains a priority.

“We remain committed to maintaining our presence in the locations currently housing Pick n Pay outlets. Our operations will continue as usual, and there are no plans to close any stores. We value the strong relationships we have with our landlords, and will work closely with them to ensure stability and continuity throughout this transition period and beyond,” he told New Era.