SA unions appeal against Wal-Mart takeover deal

JOHANNESBURG – The South African Commercial Catering and Allied Workers’ Union (Saccawu) has filed an appeal against the already-approved takeover of local retailer Massmart Holdings by US retail giant Wal-Mart.

The union lodged the appeal with the Competition Appeals Court on Monday. It said yesterday it would wait for the Competition Tribunal to make public its reasons for approving the R16,5 billion deal before explaining what exactly it hoped to achieve from the appeal.The Tribunal is to reveal its reasons today.In its application, Saccawu said it is appealing ‘the whole decision and order of the Tribunal, including the approval of the deal and the imposition of conditions’.Jason van Dijk of law firm Norton Rose SA said the union could be unhappy at the Tribunal allowing for the re-employment of 503 retrenched employees as and when job vacancies arise at Massmart, instead of insisting on reinstatement.’Clearly the union is unhappy with some of the Tribunal’s terms of the deal,’ said Van Dijk.Van Dijk, whose law firm has represented the three government departments opposed to the deal, said details of the application would become clearer after the Tribunal publishes its reasons for approving the takeover.The government has not yet decided whether or not it would appeal, but has the option of joining Saccawu is its action.LIMITED CONDITIONSIn May the Competition Tribunal ruled that the deal could go ahead with conditions proposed by Wal-Mart and Massmart.The conditions included setting up a R100 million supplier development fund, not retrenching employees for the next two years due to changes brought about by the merger, and the continued recognition of Saccawu for three years post the merger.Massmart holdings include Game, Makro, Dion and Builders Warehouse. On June 20, Wal-Mart said it had completed its acquisition of a controlling stake in Massmart Holdings and named three new members to its board.The world’s largest retailer said it had completed its investment and that it expected to create ‘many jobs’ and support local suppliers in its newest market. – Nampa-Reuters and Fin24