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Johannesburg - The hostility shown by the Cosatu towards the offer made by global retail giant Walmart to purchase JSE-listed Massmart for R30bn harms SA's image, the DA said on Wednesday.
"Cosatu's knee-jerk opposition to the deal reveals their narrow self-interest and prevents all South Africans from reaping the benefits of increased competition in the retail sector," the party's shadow trade and industry minister Tim Harris said in a statement.
On Tuesday the Western Cape branch of the Congress of SA Trade Unions stated it was opposed to Walmart's presence in the country.
"We are alarmed that we are even considering an offer from Walmart to take over key strategic national companies in South Africa," it said in a statement.
Walmart was "notoriously anti-union" and an affront to workers' rights wherever it operated, it charged.
However, the DA said the union federation's hostility was harmful as firstly, the country needed to signal to global investors that it was open for business.
"The R30bn inward investment into our country would bring real benefits to an economy still struggling to shrug off the effects of recession," Harris said.
It would stimulate general economic activity and be a welcome boost to job creation.
"The R30bn price tag is testament to the value that the founders, managers and workers of Massmart have created."
The entrance of a global player into South Africa's retail sector would increase competition, force retailers to improve service levels, and result in lower prices.
"This would cause downward pressure on the general price level and open up space for us to lower interest rates - to the benefit of all South African businesses," Harris said.
In addition, analysts had already been quoted in the media claiming Walmart's entrance might create a "gigantic price war".
Thirdly, there seemed to be a general assumption that Walmart would flout the country's labour laws.
"Our labour legislation has many unintended negative consequences, but important aspects of our laws protect workers' basic rights - which all role-players, including the DA, strongly support."
Harris said any business operating in South Africa would have to abide by these laws. To assume a company would simply be allowed to break them was wrong.
"It is up to the government to welcome new investors into our economy - and then regulate them fairly and effectively."
Harris challenged Trade and Industry Minister Rob Davies to come out strongly against Cosatu's opposition to the proposed deal.
"He needs to go on record in support of investment into South Africa and competition in the retail sector; and publicly recognise the numerous benefits such a deal would bring to all South Africans - our country's international reputation as an investment destination depends on it."
"Cosatu's knee-jerk opposition to the deal reveals their narrow self-interest and prevents all South Africans from reaping the benefits of increased competition in the retail sector," the party's shadow trade and industry minister Tim Harris said in a statement.
On Tuesday the Western Cape branch of the Congress of SA Trade Unions stated it was opposed to Walmart's presence in the country.
"We are alarmed that we are even considering an offer from Walmart to take over key strategic national companies in South Africa," it said in a statement.
Walmart was "notoriously anti-union" and an affront to workers' rights wherever it operated, it charged.
However, the DA said the union federation's hostility was harmful as firstly, the country needed to signal to global investors that it was open for business.
"The R30bn inward investment into our country would bring real benefits to an economy still struggling to shrug off the effects of recession," Harris said.
It would stimulate general economic activity and be a welcome boost to job creation.
"The R30bn price tag is testament to the value that the founders, managers and workers of Massmart have created."
The entrance of a global player into South Africa's retail sector would increase competition, force retailers to improve service levels, and result in lower prices.
"This would cause downward pressure on the general price level and open up space for us to lower interest rates - to the benefit of all South African businesses," Harris said.
In addition, analysts had already been quoted in the media claiming Walmart's entrance might create a "gigantic price war".
Thirdly, there seemed to be a general assumption that Walmart would flout the country's labour laws.
"Our labour legislation has many unintended negative consequences, but important aspects of our laws protect workers' basic rights - which all role-players, including the DA, strongly support."
Harris said any business operating in South Africa would have to abide by these laws. To assume a company would simply be allowed to break them was wrong.
"It is up to the government to welcome new investors into our economy - and then regulate them fairly and effectively."
Harris challenged Trade and Industry Minister Rob Davies to come out strongly against Cosatu's opposition to the proposed deal.
"He needs to go on record in support of investment into South Africa and competition in the retail sector; and publicly recognise the numerous benefits such a deal would bring to all South Africans - our country's international reputation as an investment destination depends on it."
