Massmart bounces as CompComm hits back

Retailer forced to reinstate retrenched workers.

Shares in JSE-listed retail giant Massmart bounced more than 3.5% in Monday trade despite being instructed to re-employ retrenched workers negatively impacted by corporate restructuring in 2009 and 2010.

According to a release issued by the Competition Commission, Massmart was to reinstate a remaining 94 employees who were part of a group of 503 who were previously retrenched. This followed several negotiations between the Commission, Massmart and consultations with the South African Commercial Catering and Allied Workers Union (SACCAWU).

This followed an appeal brought by the Minister of Economic Development who had originally approved the proposed merger between US giant Wal-Mart and Massmart

According to the Competition Commission Massmart has agreed to the following:

1. The reinstatement, with six months back pay, of the 61 employees who participated in the remedial plan and accepted Massmart’s reinstatement offer, those who were part of a group of 89 employees who had not received the merging parties’ initial offer letters of reinstatement and had not responded to the offer. Those employees who were reinstated in February 2014, but are yet to receive the back pay.

2. The reinstatement, with three months back pay, to:

  • Those of the 94 employees within the group of 128 employees who participated in the remedial plan by providing affidavits to the Commission and who ultimately accepted Massmart’s reinstatement offer by 30 September 2014; and
  • Any other individuals within the group of 128 employees who, by no later than 12 August 2014, have provided the required affidavits to the Commission and who ultimately accept Massmart’s reinstatement offer by 30 September 2014. The 128 employees were part of a group that had received the merging parties’ initial offer letters of reinstatement and had not responded to the offer.

3. Make settlement offers to eligible retirees and estates of deceased employees within the groups of 61 and 94 employees referred to above, consistent with the terms of the previous settlement offers.

Massmart will report to the Commission on the progress of the implementation on 1 September 2014, 15 September 2014 and 10 October 2014.

Shares in Massmart were up R5 to R149 per share by 4:30pm on Monday 18 August 2014.

COMMENTS   0

Comments on this article are closed.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: