The Congress of South African Trade Union (Cosatu) on Tuesday lambasted retail giant Massmart’s plans to retrench nearly 1,500 employees.
Cosatu spokesperson Sizwe Pamla said labor unions must fight the looming retrenchments.
“We call on all unions in the sector to work together and demand that the employer to explore other alternatives to retrenchments,” he told Xinhua.
Massmart said it would be shutting down 34 retail stores across South Africa citing underperformance.
“The Massmart group has recently conducted a store optimization project that highlighted a number of underperforming stores in its portfolio. Consequent to this project, the Massmart group seeks to advise shareholders that Massmart has commenced, a potential store closure,” the company announced.
“This is a reminder that foreign direct investment is not a panacea to all our economic problems,” Pamla said, “When Massmart was sold to Wal-Mart some few years ago, the federation objected on the ground that these mergers and acquisitions result in job losses long-term.” Enditem