Labour Union backs down on Vodacom boycott

THE Congress of South African Trade Unions (COSATU) has backed down on its threats to urge a boycott of Vodacom.

Instead, the labour body said it will engage with the management of the cellular company to map the way forward following the South African High Court ruling against COSATU’s demands to halt the Vodacom-Vodafone transaction.

“The CEO of Vodacom has since requested a meeting with COSATU to discuss our concerns. The Central Executive Committee (CEC) agreed to accept this invitation and, together with the Communications Workers Union, to engage with the company. The meeting discussed a proposal to launch a consumer boycott of Vodacom but decided not to do so as legal contracts signed by consumers including unions make this a difficult campaign to sustain,” COSATU said in a statement.

“CEC endorsed the legal action taken by the COSATU NOBs to try to block the sale of Telkom’s 15 percent shareholding in Vodacom to the British company Vodafone, which now has a controlling 65 percent shareholding in the company. Despite having the belated support of Independent Communications Authority of South Africa, and a very strong case, the court unfortunately rejected our application, with costs. The judge argued that the potential financial harm caused to Telkom and Vodacom shareholders outweighed the need for public discussion on the loss of any remaining public control over this big, important company.”

COSATU had earlier threatened to call for a boycott of Vodacom following the transaction, arguing that the deal was against the public interest.

Mthulisi sibanda