Walmart in the rest of Africa - is this a new form of colonization?

African trade unions that organize in the retail sector say that nothing much has change since Walmart bought 51% shares in South Africa’s retail giant, Massmart. Despite fierce resistance from trade unions, Walmart, the world's biggest retailer gained its first foothold in Africa after the R16, 5 billion acquisition of a 51% stake in Massmart. According to the company website, Massmart operates stores in 14 sub-Saharan African countries. Walmart is notorious for union busting and exploitative labour practices. It does differ from one country to other but the general consensus is that there has not been any noticeable change in working conditions since the take-over by Walmart.

Working conditions

According to the Tanzania Union of Industrial and Commercial Workers (TUICO) Assistant Secretary General, Peles Jonathan they have not seen any noticeable changes since Walmart takeover of Massmart. Trade unions in Ghana also say they have not seen any changes yet.  However, the Commercial, Industrial and Allied Workers Union (CIAWU) in Malawi says that even though there has not been change in working conditions, Massmart is continuing with recruiting senior staff from South Africa, a phenomenon that they have been fighting since Massmart set up shop in that country.  CIAWU’s general secretary, Mary Dzinyemba says that this practice has made them more suspicious and “this looks like they are trying to hide something”. Dzinyemba says that a local senior staff member contract was cancelled under suspicious circumstances and a South African filled the position.

Trade Union recognition

The company does recognize trade unions and trade unions do have collective bargaining rights. This, according to the trade unions is a result of the strength of the trade unions. TUICO’s Assistant General Secretary says that they are planning for collective bargaining with Game - one of Massmart’s trading brand stores- and that the negotiations will take place in August.

Comparison between South African companies to other multinationals operating in the country

This varies from one country to other and sector-to-sector. According to John Esiape from The Union of Industry, Commerce and Finance Workers, UNICOF, an affiliate of Ghana Trade Union Congress, the South African companies do not have a good reputation in Ghana. Esiape says the South African companies pay poor salaries and that “ they are among the worst labour friendly organizations and Shoprite tops the list in this regard”.  Shoprite is a South African based retail and fast food company. It operates over 1200 corporate and 270 franchise outlets in 16 countries across Africa and the Indian Ocean Islands.

However, trade unions in Malawi maintain that South African companies are better than Indian companies in terms of respecting workers rights for example.

Way forward

Recently, a South African appeals court issued a decision that greenlights a merger between Massmart and as a condition of the merger, Massmart must rehire 503 distribution workers that the company let go in the run-up to the merger -- layoffs that the South African Commercial, Catering and Allied Workers Union argues that Massmart issued in order to make itself a more attractive partner during Walmart's courtship.

International solidarity is going to be the key for African trade unions in dealing with Walmart.
Currently UNI global Africa is running a regional collective bargaining programme for trade unions that organize Shoprite workers. This should be extended to Massmart-Walmart trading brand stores.