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SACCAWU members demonstrating against the Walmart takeover of Massmart outside the DTI offices in Pretoria where the Competition Board hearing was being held. Photo: Simphiwe Mbokazi
The Congress of SA Trade Unions on Tuesday expressed grave disappointment at the Competition Commission ruling conditionally permitting US retail giant Walmart to go ahead and acquire a controlling stake in Massmart.
“... The approval does nothing to address the fundamental concerns raised by Cosatu, the South African government and numerous other concerned South Africans,” Cosatu spokesman Patrick Craven said in a statement.
Earlier, the tribunal approved the deal with conditions that were proposed by Walmart and Massmart.
These included setting up a R100 million supplier development fund, no merger-related retrenchments for two years, and the continued recognition of the SA Commercial Catering and Allied Workers Union for three years post the merger.
Cosatu was willing to engage with Walmart on its concerns, but if no satisfactory agreement was reached, it would decide how to proceed with a mass action campaign at its upcoming central committee meeting.
Craven said there was no guarantee that the “notoriously anti-union company” would continue to respect negotiated agreements after the three years were up or whether it would not “revert to the union-busting tactics for which they have become notorious around the world”.
The pledge to spend R100 million to develop local suppliers was “vague and minimal”, Craven said.
“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.”
Craven said Cosatu did not oppose foreign investment, particularly if it led to employment creation but Walmart was “more likely to destroy jobs” by using its competitive advantage to force competitors out of business.
The government and unions were concerned the deal would lead to job losses and hurt local procurement. However, the tribunal said conditions proposed by Walmart and Massmart to counteract these were sufficient, and warned they would be enforceable.
Reasons for the tribunal's decision would be released on or before June 29.
The Massmart group includes Game, Dion Wired, Makro, Builders Warehouse and Masscash. -
Sapa
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lightscribe, wrote
GO WALLMART!!!!! It's about time that someone start busting up SA's unions. Our goverment is definitely not able to.
marty, wrote
go to work you lazy fat cosatu slobs - oh sorry I forgot you probably will not get hired as you are all incapable of putting in an honest day's work!
Chris Andrews, wrote
In my opinion COSATU are leeches that exist through the largesse of employers in the private and public sector - they believe that a job is a right not a privilege because basically are fighting for a Marxist state. They are leeches on the ANC because they alone cannot achieve the power they lust after to achieve a Marxist state. But what creative use are COSATU in our economy? I challenge COSATU to give evidence of 1 job that they have created that hasn't been forced on an employer through bullyboy tactics. This demonising of Wallmart (which 'small towns' are they going to be located in???) assists COSATU in their on-going campaign to appear to be politically relevant. Grandstanding at every opportunity, but of very little practical use in the creation of jobs.
Anonymous, wrote
This sort of statement is what can be expected from an inward, selfish union. It is about time they started to think of the welfare of the State and of attracting inward investment, which will benefit all.
Anonymous, wrote
The unions have destroyed far more jobs than Walmart could ever have done ! Does Mr Craven have some some sort of economics degree that qualifies him and Cosatu to interfere in things which they know nothing about ?
Anonymous, wrote
CHRIS, wrote
Bad News! The positive spin off will be the ranks of the trade unions swelling to create better working conditions for all across the globe.
Quirinius, wrote
First time in my life I agree with Cosatu: There is also a movie out on the internet "Wallmart: The high cost of low prices" which explains Wallmarts Eexploitation of people.
Rilman, wrote
I bet Craven would continue to buy his electronic goods at GameWallmart and not join the boycot.
Drs Sears Appalsamy: Netherlands, wrote
Cosatu takes care of the welfare of its members and the government has to tae of te welfare of the whole country. I applaud the deciison of the government and hope this will lead to greater investment from foreign multnational companies. This signals the governments attitude that foreign investmnt is welcome in our beloved South Africa
Anonymous, wrote
Kenneth Stone, Professor of Economics at Iowa State University, in a paper published in Farm Foundation in 1997, found that some small towns can lose almost half of their retail trade within ten years of a Wal-Mart store opening.Wal-Mart's high annual turnover-rate of ~70% shows that workers are dissatisfied and maltreated.Wal-Mart founder Sam Walton once said, "I pay low wages. I can take advantage of that. We're going to be successful, but the basis is a very low-wage, low-benefit model of employment."
Anonymous, wrote
The day Vavi and Craven learn to spell, let alone understand, the words "worker" as opposed to employee, "productivity" as opposed to exploitation, "Job Creator" as opposed to 'employer the exploiter' AND, of course a "market economy' as opposed to whatever it is they espouse, and as long as they they appeal to baser instincts with their cliched sloganeering, ARE WE GOING TO create JOBS? ...and as for their infidelity!! Jumping into political bed with a spouse who really does not know whether it's politically male or female, and holds that very spouse that gives it succour to ransome every fifth season of the year (remember spring, summer, aut..., wint.., and ..... strike season!).. no wonder the other joker in the pack, the minister of wotever ( you remember the guy who destroyed the Clothing Industry before being rewarded with a cabinet post for his 'accomplishment'), seeks people to join the debate on the question of job creation, because the penny has dropped! The chances of that outrageous promise of 5 million jobs by what ever year he conjured up, coming to fruition is more remote even at the time of the promise because WE'RE LOSING JOBS! ... and the real players in the game need to be approached! Approached? APPROACHED? Let them get on with the task they do best for crying out loud and stop encumbering them with onerous, restrictive laws that do exactly the opposite of that which we all want… JOBS!!! …Walmaat!! Welcome!! And bring some competition to this retail industry. Incidentally do you guyz have any pals in the banking sector that will provide some support to Capitec and introduce some competion in that sector as well? VIVA JOB CREATION VAVI... ooops .. I meant VIVA!!
living in Exile, wrote
Comrade Patrick, To Qoute you "The pledge to spend R100 million to develop local suppliers was “vague and minimal”", Craven said. What has your union done as a cheif alliance partner in the investigation of the arms deal? Come on Brother you are either a union or a political party ok. Where are all the jobs that were promised by the off sets of the arms deal? There were concrete promises int he arms deal not "vauge and minamal" SA had a complete shipbuilding industry, a complete aerospace industry, A complete armanents industry. Yet where where you and your toy toying clowns when the regime of the day gave all this employment away to the man with the biggest brown envelope? Millions would have been employed brother. Ask the regime now how much employment has been created from the "off sets" of these deals ok. Ask the regime why they have chinese welders working for Luthuli house while thousands of highly qualified welders and boilermakers sit at home in Wentworth Brother. Why do think you clowns lost the minoroty vote?
Anti Union, wrote
I hope this whole deal actually materialises, I'm sick of paying the same fortune for food at various local grocery stores. There is no competition in SA, all the prices are fixed. Wallmart must kick butt in SA. Down with the unions, all they do is cause trouble.
Stuart, wrote
It may be true that Walmart employ union-busting tactics to their advantage but by the same token it means COSATU must have their house in order to avoid falling to the union-busting Mart crowd.Easy peezy, no?
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