Wal-Mart Stores’ bid to acquire a controlling stake in Massmart moved a step closer to fruition yesterday when Massmart shareholders voted overwhelmingly in favour of the R148 a share offer.
Although shareholders overwhelmingly support the transaction, continuing signs of tension between Massmart management and trade unions overshadowed the shareholders’ meeting in Johannesburg.
Union representatives told journalists at the meeting that a planned demonstration by Massmart employees had been abandoned as a result of intimidating correspondence received from management.
However, Massmart chief executive Grant Pattison denied that there had been any intimidation. He said when management learnt, from the media, of the planned demonstration, it addressed a letter to the union and reminded it of the need to get police approval.
“We were happy to have a demonstration but it had to be according to the letter of the law,” Pattison said.
It emerged yesterday that the SA Commercial, Catering and Allied Workers’ Union has requested a 15-day extension to the Competition Commission’s January 24 deadline for submissions on the offer.
The Massmart shareholders meeting, which voted 98 percent in favour of the offer, dragged on for more than two hours as representatives of trade union associations from South Africa, Switzerland and the US addressed the Massmart executives and scores of financial and legal advisers.
Cosatu first deputy president Tyotyo James urged shareholders to vote against the transaction, which he claimed had already cost more than 1 000 jobs. He said Cosatu “would do what Cosatu does best, we will hold the mother of all boycotts, we can’t afford this deal to go through”.
Alke Boessiger, the head of the commerce sector of Swiss-based Uni Global, which represents 20 million workers globally, told the meeting that Uni Global had received several reports about the bad relationship between Massmart and labour. She said this was in contrast to the management’s claims about good relations with workers and the unions.
Boessiger urged South Africans to use Wal-Mart’s bid process “to secure standards that would protect workers, local suppliers and community interests”.
Michael Bride, the deputy organising director for global strategies of US-based UFCW, told the meeting that Wal-Mart had a devastating impact on workers, small businesses and small communities across the US. He asked the board what steps had been taken to protect the interests of citizens.
Massmart chairman Mark Lamberti said the board had “very carefully probed” Wal-Mart’s approach to laws, especially relating to labour, and had probed agreements with labour and suppliers.
“We could find no evidence of Wal-Mart turning the interests of suppliers and workers on their head,” he said.
The union representatives said labour was hoping to use Wal-Mart’s international track record to ensure that the competition authorities would attach conditions to the merger.
The stock rose 10c to R145. - Business Report