Wal-Mart’s acquisition of South Africa’s Massmart could lead to thousands of job losses and worsening labour conditions, the South African government was going to argue at a hearing that was due to start on Monday.
According to a study commissioned by South Africa’s economic development and agricultural departments, if Massmart shifts 1% of its sales to imports from domestic suppliers, about 4 000 jobs could be lost.
The report, available on the website of South Africa’s Competition Tribunal, is one of several statements to be delivered to the tribunal this week as part of a government hearing on Wal-Mart’s $2,3 billion bid for 51% of the South African retailer.
Wal-Mart’s entry into South Africa could also mean worsening working conditions at Massmart, according to the report.
Wal-Mart has said it will honour Massmart’s existing contracts with workers.
Competition authorities are the final hurdle for the deal, after shareholders voted overwhelmingly in favour of it.
The Competition Tribunal in March delayed the hearings to this week, to allow the government and unions more time to make submissions.
South Africa’s trade minister said last week he wanted “concrete commitments” from Wal-Mart not to cut jobs.
