US Wal-Mart to enter South African retail sector

The world’s biggest retailer is reportedly says it is not convinced about the latest threat from trade unions during its acquisition attempt in the Republic of South Africa. Wal-Mart Stores Inc is said to have offered some ZAR 30-bil (about USD 4.5-bil) for South Africa’s wholesaler group Massmart Holdings Ltd, which is registered on the Johannesburg Stock Ecxchange (JSE).

Wal-Mart is reportedly convinced that it would strive in the African economic climate following the upwards surge from last year’s economic crisis. South Africa’s Congress of South African Trade Unions (COSATU) in a statement stressed its concerns of possible slave labour following a possible acquisition. COSATU has pledged to “oppose setting up any Wal-Mart stores.”

COSATU has allegedly accused Wal-Mart of being hostile, anti-union and violating workers’ rights and has reportedly already turned to the economic minister to veto the deal. Wall-Mart is not welcome in South Africa, the congress allegedly expressed. However Doug McMillon, President -CEO of Wal-Mart International denied any allegations of hostility and added, “We respect and honour pre-existing union relationships and are committed to abiding by South African labour laws.”

Source: The Budapest Report

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