Welcome to the
first edition of this
bi-annual Walmart Watch
bulletin. Since Walmart,
America’s retail giant,
acquired the 51% majority
share in Massmart, a South
African firm that owns local
chain stores such as Game,
Makro, Builders’ Warehouse and
CBW. Walmart’s acquisition of
Massmart has riled and
captured the interest of trade
unions and communities as the
company is notorious for union
busting and exploitative
labour practices. Walmart is
reputed to be the biggest
company in the world with its
turnover and profits dwarfing
that of several national
economies. Effectively it is
an economic giant that profits
from extreme exploitation and
abuse of workers. It has now
entered the South African
economy and that of the
continent where workers’
income levels and rights are
relatively low when compared
to that of North America and
Europe.
Like all large monopoly
companies, Walmart will seek
to expand its market here and
try to out-compete the likes
of Shoprite-Checkers and Pick
‘n Pay. This process has huge
and potentially devastating
consequences for workers and
trade unions in the retail
sector and indeed small
business and communities. It
is for these reasons that we
decided on producing this
bulletin. We will be
monitoring Walmart’s company
practices and report and
inform you. Such information
can contribute towards
communities and trade unions
better organizing themselves
to respond to the bad labour
and community practices that
Walmart is well known for.
We start off with three
articles in this the first
bulletin to serve this
purpose. We have an article
that looks at the impact of
Walmart in South Africa. Jobs
are already being shed in
South Africa’s retail
companies so that they can
cope with competitive
pressures from Walmart and as
is customary workers bear the
brunt of this.
With South Africa already
having positioned itself and
being seen as a gateway for
foreign direct investment in
Africa and it is only a matter
of time before Walmart takes
over and dominates the retail
and wholesale market in
Africa. The second article
looks at what impact the
acquisition has had on the
continent since Massmart and
other South African big
businesses are operating in
different countries in Africa.
We also include the press
release from High Court Judge
Dennis Davis which provides a
summary of his judgement on
the case brought by the
government and trade unions
against the Competition
Commission’s decision in
favour of the Walmart takeover
of Massmart.
A notable victory for workers
and Saccawu in the judgement
was the decision to reinstate
the 503 workers who were
retrenched by the company in
2010 to secure the deal with
Walmart. However, this
reinstatement order has
already been mired in conflict
between the company and the
union with Walmart insisting
that the reinstatement is not
retroactive to the original
date of the workers’ dismissal
but rather the day of the High
Court tribunal judgement.
Workers and the union have
also complained that in real
terms most workers have not
actually been reinstated as
the company claims that they
are unable to contact the
workers. Many workers who have
accepted reinstatement also
complained that they are being
offered different jobs at
lower levels than previously
or in stores far away from
where they live.
The last article is about the
corruption scandal in Mexico
that Walmart has been involved
in. With the high-levels of
corruption in South Africa
both in the public and the
private sectors, it remains to
be seen whether South Africa
would similarly be fertile
ground for Walmart’s corrupt
practices in its quest to
dominate the market here.
For more on Walmart and other
issues that affect workers in
South Africa and in Africa
please visit our website
and go to the podcast section.
Also tune in into your
community radio station, SABC
Channel Africa, Cape
Town TV (every Tuesday between
21h00-22h00 and Soweto TV).
We encourage all readers to
also contribute to the
bulletin either with relevant
information or articles.
The next edition will be for
October – November 2012.
Martin Jansen
Director/Editor
Workers’ World Media
Productions
Contributors: Lindiwe
“Tiny” Magija, Mzi Velapi
and Martin Jansen
Design and Layout: Nicolas
Dieltiens