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SACCAWU notes with disappointment the submission of the Competition Commission of its recommendation to the Tribunal on Saturday, the 12th of February 2011.

Whilst it was not unexpected of the Commission to submit recommendations to the Tribunal, it is in fact very disturbing that this was done in a manner clearly demonstrating the Commission’s long held conclusion, despite representations made by SACCAWU and other interested stakeholders. It should be noted that the Commission had as early as 11 January 2011 declared to have concluded its investigation, despite not having afforded SACCAWU and SACTWU an audience whilst it was informed of our intention to participate in the process. Over and above this, the Commission had since October 2010 pretended that it will provide SACCAWU with questions based on which the Union will then be afforded an audience. Unfortunately, in their haste to recommend approval of the deal, the Commission simply reneged on this undertaking, with no explanation or courtesy to inform the Union of their decision to deny it the right to be heard. It was on this basis that SACCAWU pushed for an extension of the date of Commission’s submission to the Tribunal. Even at that point the Commission slipped up and made utterances to the effect that there were “no competition issues” despite having not received at that time the submission by these two organisations, except for a letter indicating an wish to make submissions and representation in the matter; however was quick to retreat when confronted on the basis of such utterances.





The Commission continued to pretend that it was engaging SACCAWU in a bona fide process, when they know all along that the process was but a mere formality, as usual running through the motions and that their decision based on the letter of 11 January 2011 still stands. We are disappointed that the Commission has failed, yet again to identify issues of competition, the implications of the merger on the supply chain, small business, environment and worker issues against the developmental imperatives of South Africa even when same was duly presented and brought to their attention, let alone the massive imperical evidence on this and on Public interest issues.





We are outraged by this development, which not only rubbishes the genuine concerns of SACCAWU and other interested parties at the altar of obsession with the so-called Direct Foreign Investment that is being punted above everything else. We are equally outraged by the Commission’s recommendation to the effect that the deal must be approved with no conditions, based on mere undertakings by the merging companies, despite evidence pointing to the effect that Walmart has a proven ability to renege from undertakings as has been the case elsewhere in the world. This is so, also despite glaring evidence on massive jobs losses and stripping and flipping and/or disposal of some companies or parts thereof of recently approved acquisitions, mergers and private equity buy outs by the same Commission, with blatant disregard of SACCAWU submissions in such transactions.





Once again, the institutions that are supposed to add impetus to the Country’s developmental agenda, decent work and a better life for all, have failed to seize the moment and do what is right; even if just this once. The Competition Commission, we have observed overtime, does not take into consideration issues raised by Labour despite the aftermaths glaring negative consequences; it is instead so obsessed with matters that places it on the Public limelight, like the cartels on price fixing, yet also employs no monitoring mechanisms to ensure that the losses suffered by culprits are not visited upon and/or recouped through other subtle means from the unsuspecting Public and Consumers.





We will continue waging the struggle to ensure that our voice is heard, no matter how much is institutionally muffled by the Commission and those who are preaching foreign Direct Investment until sanity prevails!





SACCAWU PRESS STATEMENT ON THE COMPETITION COMMISSION’S SUBMISSION OF ITS RECOMMENDATION ON WAL-MART/MASSMART MERGER TO THE TRIBUNAL





For more on this contact:

Mike Abrahams

media@saccawu.org.za