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Jennings was reacting to reports that the Cambridge Food supermarket chain, a subsidiary of Massmart, is employing the majority of staff through three labour brokers.

Jennings wrote in the article, “If these reports are confirmed and Massmart is using labour brokers, it would be an act of bad faith, inconsistent with its original promises and the conclusions of the Competition Tribunal.”

He continued, “This should be a warning to the South African government that the quality jobs the Massmart-Walmart merger promises will come into effect only if the conditions applied to the deal are stringent and watertight.”

Jennings suggested the South African and Indian governments cooperate as both their countries were facing challenges from the global retail model represented by Walmart. He pointed out that India’s government has put its plans to introduce multibrand foreign direct investment (FDI) on hold after protests from small retailers, unions and even members of its own government. UNI Global Union has already made representations to the Indian government and is taking part in the consultation process, arguing that if FDI is allowed at all, there should be strict conditions applied.

The decision of the Appeal Court in South Africa into whether the Massmart-Walmart should go ahead and under what conditions is expected soon. In partnership with SACCAWU, SACTWU and COSATU, UNI played a leading role in challenging the original decision to allow the merger.



Read Philip Jennings’ op-ed in Business Day here: http://www.businessday.co.za/Articles/Content.aspx?id=164861