Home / Knowledge / News / Wal-Mart bid approval disappoints SACTWU
Wal-Mart bid approval disappoints SACTWU
16
Feb '11
The SA Clothing and Textile Workers' Union (SACTWU) notes with deep disappointment the reports that the Competition Commission has recommended the unconditional approval of the Walmart/Massmart merger.

We have made submission to the Commission, suggesting that the merger should be prohibited as it cannot be justified on public interest grounds and would give rise to a substantial lessening of competition. We are disappointed that our cautions appear not to have been accepted by the Commission.

In our submission, we provided international examples, including from the United States, Germany, Mexico, Brazil, Costa Rica and Guatemala of Walmart's past practices and business methodologies to show that this merger, if approved, will
• reduce competition in the retail and manufacturing sectors,
• cause retrenchments and factory closures at Massmart's current South African suppliers and its competitors' suppliers, and
• negatively affect broad-based black economic empowerment.

We provided the commission with further examples where Walmart, often acting alone and sometimes with other retailers, were found guilty of or were suspected of participating in unlawful anti-competitive practices, including Germany, Wisconsin, US and Costa Rica.

SACTWU believes that Walmart will effect changes to Massmart which will negatively impact employment in Massmart itself and in Massmart's South African suppliers. Then, when other South African retailers increasingly mimic Walmart's behaviour, it will negatively affect employment at these retailers' local suppliers as well.

In our submission, we debunked the myth that Walmart's low prices only constitute a benefit. We cited several studies to show that there is a serious social and economic cost, including lost jobs, reduced wages and benefits, increased reliance on state welfare, an increased and unbalanced trade deficit and even health concerns, to such low prices which outweighs possible benefits.

While extremely disappointed with the Commission's findings and recommendation, we will now use the forthcoming Competition Tribunal hearings to make the case that this merger should be prohibited.

SA Clothing and Textile Workers' Union (SACTWU)


Must ReadView All

Digital textile printing sector to grow by 20% by 2020

Textiles | On 18th Jun 2018

Digital textile printing sector to grow by 20% by 2020

The digital textile printing sector is expected to have a compound...

Courtesy: Hela Clothing

Apparel/Garments | On 18th Jun 2018

Hela's latest label revolves around underwear, sleepwear

The latest collection of Sri Lanka’s Hela Clothing is revolves mostly ...

Kenya levies higher duties on mitumba import

Apparel/Garments | On 18th Jun 2018

Kenya levies higher duties on mitumba import

Kenya’s treasury secretary Henry Rotich recently raised the duty on...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search