News

UNI Global Union General Secretary, Philip Jennings says, "I congratulate the South African government for taking this action. People around the world are tired of the corporate bully who always seeks to play by its rules. It was right for the government to think again - courageous and correct."



The court hearing in Cape Town is deciding whether the matter should be referred back to the Competition Tribunal for consideration.



Three South African Government Ministries, supported by labour federation COSATU, are appealing based on their claim that the earlier Competition Tribunal proceedings were fundamentally flawed and are seeking a full rehearing of the matter.



The Ministries' case will be followed by a hearing on the appeal entered by UNI Global Union affiliate and the union representing retail workers in South Africa, SACCAWU.



SACCAWU presented new evidence to the court only days ago which shows that Massmart has already imported Walmart's anti-union practices and that the company has already started growing its imports and reducing local sourcing, both of which are key factors under South Africa's merger approval regime.



The unions are contesting the findings of the Competition Commission and Competition Tribunal on the grounds that proper consideration was not given to substantial evidence provided by labour, independent experts and government experts. The evidence of these experts pointed to clear concerns about Walmart's track record of slashing jobs, destroying local economies and anti-union behaviour.



South Africa's Economic Development Minister, Ebrahim Patel, Trade and Industry Minister, Rob Davies, and Agriculture, Forestry and Fisheries Minister, Tina Joemat-Pettersson, have applied for a review of the acquisition.



Michael Bride of North America's United Food and Commercial Workers Union (UFCW), who is attending the hearing in Cape Town says, "We support the actions of the Government departments, COSATU and SACCAWU because we have seen the impact that the Walmart business model can have on workers. In North America Walmart has put downward pressure on worker salaries and caused a fall in the working conditions of its employees. It has a deserved (poor) reputation among its workers".



Bride, who represents a 1.3 million member union based in Walmart's homeland pointed to the disparity between what Walmart told the Tribunal and what it is telling investors, stating "Walmart has been assuring its investors - as recently as last week in Bentonville, Arkansas - that it will use its global muscle in areas like procurement to push costs down even further. It is difficult to reconcile this position with the claim that Walmart will be good for South African suppliers, which is why the Appeals Court should not confirm the Tribunal's decision in its current form".



The Competition Appeal court will hear both the review and appeal this week. Monday, October 24 has been set aside in case the appeal and review hearings are not fully completed by the end of today.



Read more on the Walmart- Massmart merger below:





“Beware of Walmart”, Independent Newspapers South Africa / Business Report



“Appeal against Wal-Mart and Massmart merger in South Africa”, Modern Ghana



“The biting reality of SA’s food bills”, Business Day



“’Beware of Wal-Mart’ warns union official”, Moneyweb



“S. Africa wants to review Wal-Mart deal”, AFP



“South Africa: Appeal against Wal-Mart and Massmart merger”, All Africa



“Govt appeal of Massmart continues”, Fin24



“Appeal for review of Wal-Mart merger heard”, Times Live



“Q+A-SAfrican court hears appeal on Wal-Mart, Massmart deal”, Reuters Africa