South African Union Considering Appealing Wal-Mart Approval
June 02 2011 - 12:25PM
Dow Jones News
South Africa's Food and Allied Workers Union Thursday said it is
considering appealing the Competition Tribunal's approval of
Wal-Mart Stores Inc.'s (WMT) proposed $2.4 billion merger with
South African retailer Massmart Holdings Ltd. (MSM.JO).
"We will join all the forces in the country, under Anti-Wal-Mart
Coalition, to oppose this transaction by campaign or by appeal to
the Competition Appeal Court and beyond," said the union's general
secretary, Katishi Masemola.
The tribunal approved the merger Tuesday on the condition that
Wal-Mart doesn't make any redundancies for two years, honors
existing bargaining agreements for three, and sets up a 100 million
rand ($14.7 million) fund to train local suppliers to be more
competitive and efficient.
Unions are worried that Wal-Mart will increase imports, which
will squeeze out local suppliers and lead to job losses.
"The negative impact of this transaction will still remain, even
if it will be felt only after two years, when most conditions
lapses," Masemola said.
-By Devon Maylie, Dow Jones Newswires; +27 (11) 783 7848;
devon.maylie@dowjones.com