Home / Knowledge / News / Apparel/Garments / CTFL sector may suffer from Walmart merger, SACTWU
CTFL sector may suffer from Walmart merger, SACTWU
May '11
The Southern African Clothing and Textile Workers' Union (SACTWU) has been a participant in the Competition Tribunal hearings dealing with the large merger between Walmart and Massmart.

The union is concerned that the merger will have significant negative effects on both employment in the manufacturing sector and on South Africa's reindustrialisation program.

In the closing arguments heard before the Tribunal, SACTWU's legal team argued that the merger could result in a substantial hollowing out of the SA manufacturing sector, including the clothing, textile, footwear and leather (CTFL) sectors.

SACTWU's legal team highlighted this fact by referring to evidence from the United States and Mexico, pointing out that in these economies Walmart's import volumes were so substantial as to be noticeably detrimental to local employment. SACTWU voiced concern that this may happen in SA as well.

SACTWU's legal team also argued that the possible benefits from the proposed merger will severely negate the total the cost of the merger to the economy, including increasing job losses and accelerating decline in local production and capacity.

SACTWU's legal team also pointed out to the Tribunal the contradictions in the merger parties' witness statements and the evidence they had submitted to the Tribunal. In the witness statement the merger parties admitted that there may well be a negative impact in the manufacturing sector but before the Tribunal this fact was constantly denied. SACTWU believes this was done to ensure approval of the merger and allay the fear of the merger's impact on the manufacturing sector to the union and the Tribunal.

SACTWU urges the tribunal to prohibit the merger. However, in the event that the merger is approved, it must be done only with binding and enforceable conditions to deal with the negative impact on the manufacturing sector.

Any such condition would need to deal with the impact of increased imports and the subsequent reduced demand for locally manufactured products. Any commitment that does not do this, will not address in significant way the public interest concerns that are created by this merger.

Southern African Clothing and Textile Workers' Union (SACTWU)

Must ReadView All

Textiles | On 7th Dec 2016

New Texprocil chairman bats for increased UPI adoption

Ujwal Lahoti, the new Cotton Textile Export Promotion Council...

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

The new OJ 59/1 B. Courtesy: Karl Mayer

Textiles | On 7th Dec 2016

Karl Mayer unveils new LACE.EXPRESS model for apparel

Germany’s leading textile machinery firm, Karl Mayer, has launched a...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search