The Congress of South African Trade Unions is gravely disappointed by the Competition Tribunal's almost unconditional approval of the take-over of a controlling 51% of Massmart by the American multinational giant, Walmart.
While we welcome two conditions - that 503 workers retrenched by Massmart must be reinstated, and that all agreements negotiated by the trade unions in Massmart must be honoured for three years - the approval does nothing to address the fundamental concerns raised by COSATU, the South African government and numerous other concerned South Africans.
On trade union rights, there is no guarantee that this notoriously anti-union company will continue to respect negotiated agreements after the three years are up, or whether they will then revert to the union-busting tactics for which they have become notorious around the world.
On local procurement, the pledge by Massmart and Walmart to spend R100 million to develop local South African suppliers over the next three years is vague and minimal. It smacks of a public relations exercise to divert attention from their track-record of procuring goods from wherever in the world they are cheapest, regardless of the conditions of the workers producing these goods.
COSATU has never opposed foreign investment into South Africa, particularly if it leads to the creation of new, decent jobs. Walmart however is more likely to destroy jobs, by using its competitive advantage to force its competitors out of business, and destroying South African manufacturing businesses, which will not be able to compete with a flood of cheap imports produced in sweat shops by non-union workers or in developed countries which protect their manufacturers with massive subsidies and tariffs.
COSATU is willing to engage with Walmart on these issues. But if no satisfactory agreement is reached, the COSATU Central Committee, from 27-30 June 2011, will be debating how to proceed with its campaign of mass action, which will take the form of marches, demonstrations, pickets and stay-ways, for which a Section 77 notice has already been lodged, to prevent the Walmart take-over.
Statement issued by Patrick Craven, COSATU national spokesperson, May 31 2011
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