COSATU urges Competition Tribunal to reject Walmart/Massmart deal
The Congress of South African Trade Unions, a member of the Anti-Walmart Coalition, in alliance with the UNI Global Union, reiterates its total opposition to the Walmart take-over of Massmart.
We urge the Competition Tribunal, which is holding a hearing this week, to reject the view of the Competition Commission which backed the deal, and endorse the view of SACCAWU General Secretary, Bones Skulu, that "it is not in the best interest of South Africa for Walmart to be allowed into our country", but that if they are, it must be under conditions that protect workers, suppliers, and the wider South African community.
Walmart, the world's largest company, with sales of more than US$405 billion in 2010, has massive power to dominate the world's global supply chains, and national retail sectors and to dictate the conditions of trade to thousands of supply firms in other sectors.
COSATU deeply regrets that the shareholders of Massmart, which operates Makro, Builders Warehouse, Game, Deon and other stores, put their narrow interests before those of the country and voted to accept Walmart's $4.2 billion offer to acquire a 51% controlling stake in the company.
They ignored warnings, like that in the South African Government's submission to the Tribunal, of thousands of potential job losses if the deal goes ahead without conditions. They estimate that as many as 4000 jobs from industries such as general merchandise - including clothing and footwear - and in food and beverage production could be lost if Massmart were to shift just 1% of its procurement from local to imported sources.