Walmart once more faced heavy criticism in the wake of its recent Walmart-Massmart merger in South Africa, which resulted in the loss of over 500 Massmart staff. In the ensuing court battle, the global giant failed to convince the Appeal Court in South Africa regarding issues raised by unions surrounding collective bargaining and working with local suppliers. The Appeal Court endorsed the previous decision that there should be no retrenchments resulting from the merger for two years after the transaction and that the existing labour agreements and collective bargaining positions should be respected.
UNI Global Union, the global union for skills and services that represents 20 million members in 900 unions worldwide, hailed the court decision as a victory for the 503 workers who lost their jobs due to the merger—and who must now be reinstated. Philip Jennings, General Secretary, UNI Global Union said, “The struggle for fair play is far from over. We welcome the decision by the Appeal Court that the 503 Massmart workers who lost their jobs should be reinstated. The Court’s call for a study to find ways to protect South Africa’s small and medium sized suppliers in light of the merger and to consider new conditions is the right one.” The fact that the Appeal Court has decided to commission the study indicates that Walmart may not have been forthcoming in the process. Jennings is demanding that Walmart collaborate fully with the study and—bearing in mind that its global supply chain is run from China—be open and honest about how it intends to include South Africa’s SMEs into its system. He added, “What [we] are calling for is local investment in local suppliers to grow local jobs, not halfbaked promises and loose financial commitments. The study provides a new opportunity for partnership and represents a new approach by Walmart. The story is not over.”
Paul Arkwright
Publisher
