The company experiences marginal to negative turnover growth over the past five years: Graeme Mouton

Pick n Pay Namibia today announced that it would retrench more than 500 employees as a result of the prolonged economic downturn and reduced consumer disposable income.

According to a media statement availed to Nampa today, Pick n Pay Managing Director Graeme Mouton said that the company has experienced marginal to negative turnover growth over the past five years.

“The recession has steadily eroded turnover; costs have increased annually above inflation on all fronts, resulting in a decline in profits, leading to losses over the last two years,” he said.

Mouton further said the company is aiming at reverting losses and setting the business on the path of sustainability and that restructuring will result in retrenchment.

Mouton said in March 2020, the company proposed various alternative options with the Namibia Food and Allied Workers Union (NAFAU) to avoid retrenchments but all ended in vain.

“The employees, through the shop stewards and union, regrettably rejected the company’s proposals, opting to rather follow the retrenchment route,” said Mouton.

Furthermore, he said COVID-19 and the national lockdown negatively affected the business, which was already in a dire situation, therefore for the business to survive and to secure jobs into the future, retrenchment is necessary.

Pick n Pay is a 100 per cent Namibian-owned entity that employs 1 931 employees at its 22 retailer stores in most major towns in Namibia and is a subsidiary of the Ohlthaver and List Group.

Source: Namibia Press Agency