The globe's largest retailer had endangered to pull out from the contract if targets were positioned on purchasing from domestic suppliers."We are pleased that the competition authorities have recognized the advantages that our investment in Massmart can provide," Wal-Mart International CEO Doug McMillon said.Massmart runs 9 wholesale and retail chains, with 288 stores in 14 African nations.
Knock-on effect
In addition to the sacking freeze, Wal-Mart should also give preference to re-employing 500 employees who were laid off in 2010. Patrick Craven, spokesperson for the trade union umbrella body Cosatu, asserted: "Our main fear remains completely unrequited and that is the knock-on impact on jobs in other retailers and the manufacturing industry.
"We would have liked to see some conditions on local procurement, though of course that should apply to all retailers, not just Wal-Mart." Wal-Mart has also settled to honor all collective bargaining contracts that are presently in place for the upcoming 3 years. It had already decided not to make any lay-offs for 2 years and to spend 100 million rand in the upcoming 3 years to assist South African suppliers. The competition panel will give the reason for its decision in the upcoming month.
