abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb
Article

17 Feb 2011

Author:
Economist

Walmart in South Africa: The beast in the bush - A hungry predator stalks Africa

On February 11th...South Africa’s Competition Commission approved Walmart’s proposed acquisition of a 51% stake in Massmart...South African unions view it like a charging rhino in a narrow alley. The American giant will bash unions, cut wages and drive more humane employers out of business, shop stewards predict...Mere talk of the merger has already destroyed “thousands of jobs”, they claim, by forcing other South African retailers to lay off workers and make working conditions worse...The Competition Commission is sceptical of the unions’ claims. It said it had received assurances from the merging parties that they would honour existing union agreements, abide by South Africa’s tough labour laws and source most of their products locally. Massmart insists...it plans to...add 6,300 new hires to its 27,000 employees...[T]here is a chance that Walmart will reduce prices so much that it affects the national inflation rate...[T]hat would be a hefty boon for the needy.