competition tribunal

It is still all over the news and can't be great for our image as a business friendly nation. I'm talking about the ongoing Walmart-Massmart battle taking place against Saccawu, the Cosatu-affiliated union who represent most of Massmarts workers. Remember how the planned merger was heavily opposed by various ministries when it was originally announced? Eventually the Competition Tribunal approved the deal but not without certain conditions. This includes a R100mil supplier development fund and certain labour agreements which includes no retrenchments for 2 years.

Saccawu have appealed this decision on the basis that the conditions are not strict enough and that the country's best interests are not being considered. They are worried that through Walmart, the company will import cheap goods from the likes of China and will hence destroy local manufacturing jobs as well as the jobs created by other retailers who will struggle with the increased competition.

Last week we had a hearing ending on Friday where all avenues were explored. The objective from the unions was not to cancel the whole deal but rather to implement stricter conditions. However by Friday it looked like the judges were siding with the retailer. One of the presiding judges, Judge Dennis Davis said that it was not the courts job to protect the South African manufacturing sector from ''the gale-force blast of globalisation'' which I completely agree with.

The world is a smaller place right now and we cannot compete with the Chinese manufacturing juggernaut unless we are willing to work 70 hours a week at half the wages. Let us also not forget that Walmart is the biggest employer in the world for a listed company. They are not investing in our country to steal jobs and exploit our citizens. They are here to expand and deliver a service that has improved the lives of millions and millions of people around the world. People who could not originally afford the luxury of a microwave or a washing machine will now be given access to such life improving human innovations.

Not only will these products be cheaper but necessities such as groceries and clothes will also be more affordable, helping our inflation situation. People will have more money and time to be more productive, maybe even start up a few local businesses. The multiplier effect is almost immeasurable but the pros of such an acquisition definitely outweighs the cons. Surely, if such benefits were so obvious we wouldn't be having such a backlash from people who are trying to look after the best interests of the country? It comes down to the age old capitalism vs socialism debate. I guess debate is good and you need different policy ideas to keep those checks and balances intact. In this case it seems like sense will prevail.