With the labour dispute unresolved, the South Africa Commercial, Catering and Allied Workers Union (SACCAWU) says it is considering taking one of the largest divisions of Massmart (MSM) to the Labour Court and the Commission for Conciliation, Mediation and Arbitration (CCMA) this week.
Massdiscounters finished its "re-engineering process" that involved retrenchment late in June 2010.
Lucas Ramatlhodi, coordinator secretarial office of SACCAWU, told I-Net Bridge that the union intends to go to the Labour Court today, Thursday 22 July, to challenge lock-outs and to the CCMA on Friday to challenge retrenchments.
According to Massmart's annual report for 2009, Massdiscounters accounts for 26% of Massmart's total sales of about R43.12 billion and 32% of the group's total trading profit before taxation of around R2.02 billion.
This division operates Game, the discount retailer with 87 stores, and DionWired, the electronics and appliances business that has six outlets. It employs 9 469 workers.
Ramatlhodi said retrenchments and lock-outs were "unprocedural, unfair and uncalled for".
He said Massdiscounters had locked out workers who refuse to apply for jobs that pay less.
"For us, forcing workers to reapply for jobs that are low-paying amounts to downgrading," Ramatlhodi said.
Possible takeover?
He said the union "strongly believes" that the retrenchments are linked to the possible takeover or buy-in of Massmart by the US-based retail giant Walmart.
Walmart has shown interest in investing in Africa.
Ramatlhodi said Walmart has specific labour policies that display "anti-union sentiment".
"Massmart wants to prove that it is capable of implementing such policies," he said.
Massdiscounters said the retrenchments were driven by a "re-engineering process" that was characterised by investment in regional distribution centres, new technology and the consolidation of workflows.
"Specifically the re-engineering process included the launch of a 70 000m distribution centre in Germiston and the implementation of 'green light receiving' resulting in a requirement for fewer receiving personnel in Massdicounters stores," it said.
Massdiscounters said it entered into consultations regarding the reorganisation of its business in "good faith" and endeavoured to reach consensus with SACCAWU long after the legally prescribed 60-day facilitation period, which ended in March 2010.
