Johannesburg - Trade federation, Cosatu, which represents more than 2 million workers, said on Tuesday that it is to meet with retail giants Walmart and Massmart Holdings [JSE:MSM] early in 2011 to seek a "few guarantees".
Global retailer Walmart is in the process of acquiring a majority stake in Massmart, which owns retailers such as Game.
Massmart already has a presence in some southern African countries.
Cosatu said that while it welcomes foreign investment in the country, this should not come at the expense of local jobs.
"We have expressed grave concerns and we continue to express that concern that the Walmart takeover of Massmart in South Africa has the potential of doing the opposite of creating jobs, the opposite of building the South African economy," Cosatu general secretary Zwelinzima Vavi said.
"It is very clear from the history of Walmart that it has a potential of completely undermining the South African manufacturing capacity," Vavi said.
Vavi says the labour federation will request a few guarantees at its meeting with Walmart and Massmart representatives.
"We want a commitment that they will respect the constitution of South Africa and all of its laws ,including the labour legislation - that they will source all that they will sell to all their stores from the South African manufacturing sector," Vavi said.
He said other local retailers are under threat from the Walmart-Massmart union. There were already reports that the two are spending about R67m a day on advertisements alone.
"We are fearful that a company of that size will have a negative and profound impact on South African economy," Vavi said.