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Cosatu unhappy with Motlanthe comments

Johannesburg - Cosatu on Thursday expressed disappointment at Deputy President Kgalema Motlanthe for welcoming the Walmart-Massmart merger.

"This flatly contradicts the view of his three cabinet colleagues," said Congress of SA Trade Unions (Cosatu) spokesperson Patrick Craven, after Motlanthe reportedly told parliament on Wednesday that the government was "happy" that the giant US retailer had chosen South Africa as an investment destination.

"They have done a very thorough assessment, they have been through the Competition Tribunal and they were given the thumbs-up," Motlante was quoted in the Business Day.

"What Walmart are saying is that all investors must come to South Africa. We agree with them and are very happy this is what they have done."

The question posed to Motlanthe was reportedly from Congress of the People MP Juli Kilian, who asked about the 70% decline in foreign direct investment in South Africa from 2009 to 2010, and what Motlanthe thought of the fact that Angola consumed 20% of all foreign investment into Africa.

"Cosatu is deeply disappointed with (his) stance," said Craven, adding that Motlanthe was going against the wind as his own cabinet ministers were "quite rightly" worried about a loss of jobs in both retail and manufacturing sectors, as a result of the merger.

Economic Development Minister Ebrahim Patel, Trade and Industry Minister Rob Davies and Agriculture, Fisheries and Forestry Minister Tina Joemat-Pettersson have jointly applied to the Competition Appeals Court, supported by trade unions, to have the approval for the Walmart/Massmart Holdings [JSE:MSM] deal reviewed.

They also want stronger conditions to be imposed.

"So while his government comrades are courageously battling to represent the best interests of the majority of South Africans... the deputy president assures DA parliamentary leader, Lindiwe Mazibuko, a hardcore class enemy to the ANC's constituency - the working class, that Walmart is welcome!," said Craven.

Cosatu and the SA Commercial, Catering and Allied Workers Union have expressed similar concerns to those of the three ministers, based on evidence from around the world that Walmart's entry into the retail market leads to the closure of rival retail stores.

Craven said Walmart's entry into South Africa would mean the procurement of goods from the cheapest source with no regard to the wages and conditions of the workers producing them, and the creation of a monopoly.

"This could lead to a drastic further weakening of the South African manufacturing industry, as more and more cheap imports start to fill Massmart stores' shelves," he said.

Craven further spoke against Motlanthe's stance on the youth wage subsidy - a policy which the ANC national general council rejected in 2005 - saying Motlanthe was "grossly misrepresenting the unions' arguments".

According to Business Day, Mazibuko said in parliament that government continued to stall on introducing the much-needed youth wage subsidy.

Motlanthe reportedly replied that the matter was still being discussed at Nedlac and that it was important for the subsidy not to be resisted by unions, “which believed it would casualise labour".

"It's that fear of competition by employed workers, and we believe that through that discussion in Nedlac consensus will emerge."

However, Craven said the unions' arguments had nothing to do with a "fear of competition".

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