Only senior management would benefit from deal, says COSATU.
A trade union in South Africa has criticised plans by US retail giant Wal-Mart to make a US$4bn offer for South Africa’s Massmart, saying it would not benefit the company’s workers or the wider economy.
The Congress of South African Trade Unions has issued a statement calling Wal-Mart “one of the worst and stubbornly anti-union companies in the world”, adding that the proposed takeover of Massmart “is a matter of serious concern”. It also claimed that Wal-Mart’s size allows it to dictate prices with suppliers.
“Why would the management tout this as a great deal?” asked the union in its statement. “Who are to benefit? Not the economy, not the workers, not even some of the shareholders, but top management and only those with astronomical amounts of shares. Top management will not only make millions from the sale but will immediately after the sale be offered large amounts of shares.
“Really, if anybody is to gain it will be the same top management that will try and sell the deal to its shareholders and the country as a great investment.”
It concluded: “We call on shareholders to be wary of this to [sic] good to be true offer and the implications for our economy.”
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