THE COMPETITION TRIBUNAL'S CREDIBILITY IS AT STAKE IN THE WALMART-MASSMART MERGER CASE
NEHAWU join millions of workers led by COSATU in offering its unconditional support to the Anti-Walmart Coalition in its endevours to convince the Competition Tribunal to prohibit the bid by Walmart Stores Inc. to acquire 51% of Massmart Holdings Ltd.
We welcome the fact that the Departments of Economic Development, Trade and Industry, and Agriculture, Forestry and Fisheries have taken a stand on behalf of government in their intervention after the Competition Commission summarily approved this merger without sufficiently considering crucial issues relating to the public interests.
The Competition Act demands that the Tribunal must consider the effects a merger such as this one will have on a variety of important socioeconomic factors, including: on a particular industrial sector or region, employment, the ability of small businesses, or firms controlled or owned by historically disadvantaged persons to become competitive, and the ability of national industries to compete in international markets.
The Competition Commission has already blemished its otherwise sterling track-record by issuing very lenient punishments on a number of the price-fixing cartels, especially during the bread price-fixing scandal, despite the severity of this on the welfare of the poor and working poor.
Already, its decision to unconditionally approve this merger has raised question marks as to whether it is fully guided by the spirit and letter of the Competition Act. Like many other organisations and members of the public, NEHAWU is watching the proceedings of this Tribunal with keen interest and in particular we want to see whether the commission will administer the key dictates of its guiding legislation in its final determination of the case.
Amongst other crucial considerations, we expect the Tribunal to look at Walmart's appalling track-record of mass retrenchment, casualisation and its associated practice of destroying the local supply-industries in many countries in which it operates.
Our country needs to create more jobs for the millions of unemployed people, but this does not mean that we need to allow a company with a terrible track-record and reputation like Walmart to come and bully the suppliers and exploit our people. We are encouraged and in full support of the decision by our federation Cosatu to file a Section 77 Notice, in terms of the Labour Relations Act 89 of 1995 as amended.
As NEHAWU we are ready to start mobilising our members and members of the public in this fight against Walmart. Should the Tribunal uphold the current Competition Commission's decision of an unconditionally approval of the merger, NEHAWU will immediately call for an indefinite consumer boycott of all Walmart outlets in South Africa.
Statement issued by NEHAWU Secretariat Office, May 16 2011
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