News

Press release from SACCAWU 21.01.2011:



SACCAWU welcomes the Competition Tribunal’s order which has extended the deadline for the Competition Commission to submit its recommendations in respect of the proposed merger between Walmart and Massmart Holdings. This order now gives the Competition Commission ample time to seriously consider the nature of issues that had been raised by the Union and other interested parties, including issues to be raised by FAWU, SACWTU and COSATU and other member organisations of the anti-Walmart Coalition.



We hope that the Commission will not based its recommendations on the narrow interests of Massmart Shareholders but will consider the possible impact of the proposed merger on efforts aimed at achieving the developmental objectives of the country and specifically the

following aspects:



• The possible impact on concentration and domination of the retail and wholesale sector, which is already saturated and dominated by a few major chains;

• The impact on the Local market, including its impact on upstream suppliers, manufacturers and service providers, including small businesses and conventional township traders;

• The impact on the local supply base that could arise from the merged entity’s procurement policies and practices;

• Walmart’s track record in other countries where its entry has led to massive job losses, including its tendency to dictate sector trends that compel all to adapt to Walmartisation in order to compete and survive;

• Walmart’s terrible industrial relations history as well its reputation.



The Union will play a constructive role in the process informed by the need to safeguard the developmental objectives of the country, including the interests of workers within Massmart, workers within the sector as well as workers in manufacturing and freight sectors.





Further, we note that in an interview earlier this week the CEO of Massmart Grant Pattison, commented that they do not anticipate any problems from the Competition Commission and expected the process to be a mere formality, a general attitude we've experienced from companies, believing that the Commission should simply rubber-stamp their applications. We believe this decision is significant and send a clear signal to business that they should not assume, as Mr. Grant Pattison did, that the Commission are there to serve the interests of business only.





We therefore commend the Commission for it's application for an extension and the Tribunal for its decision. For us, this decision is more than simply about this deal, it once again assert the independence of statutory bodies who's role is the interests of the country as a whole and not the narrow interests of business.





For more information contact:

Mike Abrahams

media@saccawu.org.za