Escalate the campaign against Wal-Mart: Zwelinzima Vavi

6 Apr 2011

The campaign against US retail group Wal-Mart, "which has no regard for local procurement and workers' rights", must be heightened, according to Zwelinzima Vavi, the general secretary of the Congress of SA Trade Unions (Cosatu).

He was addressing the National Bargaining Conference of the National Union of Metalworkers of SA (Numsa) in Johannesburg on Tuesday, 5 April 2011.

"We will need to hear all your voices as we say that we will not accept a race to the bottom in terms of workers' wages and employment conditions and that we will not accept further deindustrialisation and job losses that will come with the entry of Wal-Mart into our economy," he added.

"To everyone who cares to listen we say, yes, we want foreign investments and we know the connection between this and our ability to create jobs and liberate ourselves from poverty, but we also know that a good investment must really give us a potential to create jobs and crush poverty."

Vavi said labour's call to the Competition Tribunal was clear: "Don't approve the Wal-Mart takeover of Massmart without conditions."

Demands

Vavi added that the conditions had to include protection of workers' rights and local procurement.

"The demand that all retailers should procure 75% of their goods from SA also applies to all other retailers including Pick n Pay, Shoprite Checkers and Spar.

"We are submitting these demands to the National Economic Development and Labour Council (Nedlac) and if they are not realised, we shall back them with a strike action."

Recently, the Competition Tribunal adjourned its hearings into the proposed 17 billion rand merger between Wal-Mart and local retailer Massmart until 9 May , setting aside six days for the deliberations.

This comes after concern from unions that the timetable proposed by the tribunal would not allow the unions sufficient time to cross-examine witnesses.

Wal-Mart made the R17-billion cash offer in November to acquire 51% of Massmart at R148 per Massmart share, a smaller stake than the initial 100% offer in September, but one that would see Massmart retain its listing on the JSE.