Retail group Massmart said on Thursday it had decided to close its non-performing stores after extensive consultations with affected employees, labour unions and other relevant stakeholders under the guidance of the Commission for Conciliation, Mediation and Arbitration (CCMA).
In January Massmart, whose parent company is U.S. multinational retail corporation Walmart, said it had commenced a consultation process in terms of the Labour Relations Act which could see the closure of 34 stores and affect 1,440 jobs, after conducting an exercise that highlighted a number of under-performing outlets.
On Thursday it said arbitration and all other options had since been exhausted.
"Accordingly, the board have now taken a decision to close all of the non-performing stores. In light of the aforementioned decision, management will cease trading of the affected 23 Dion Wired stores on 19 March.
A decision to cease trade in relation to 11 Masscash stores had not yet been reached.
Management shall continue the consultation process with all affected employees; organised labour and other relevant stakeholders in order to mitigate the number of job losses, as a result of the closure decision, through the deployment of affected employees to vacant roles with the Massmart Group where practical and reasonable.
Other than Dion-Wired and Masscash, Massmart also owns brands such as Game, Makro, Builder’s Warehouse, Cambridge Food, Jumbo and CBW.
- African News Agency (ANA)
