South African union opposes Wal-Mart's $4.2 billion bid for Massmart

South Africa largest trade union, The Congress of South African Trade Unions (Cosatu), has come out fiercely against the proposed $4.2 billion takeover bid by Wal-Mart, the world's largest retailer for Massmart, South Africa's biggest food and general goods wholesaler.

Cosatu, comprising 21 trade unions, the biggest of the country's three main trade unions having over 1.8 million workers, is opposed to Wal-Mart's proposed transaction as it considers Massmart as one of the national companies of strategic importance.

Wal-Mart has one of the worst records on labour rights and continues to be hauled to courts by its employees, it noted.

"We call on urgent national action from government to investigate this hostile move by Walmart. Companies whose practice it is to abuse workers rights are not welcome in South Africa," Cosatu said in a statement put out on its website.

"We need a retail sector that creates decent work opportunities in this expanding sector, and the undermining of rights in one chain of stores will force non-compliance in other chains of stores and put our country on a downward spiral in terms of Labour Law compliance. Walmart is not welcome in the Western Cape."

Johannesburg-based Massmart, is one of the largest distributors of consumer goods on the African continent and is the leading African retailer of general merchandise, home improvement equipment and supplies.