The Congress of South African Trade Unions is deeply disappointed and angry at the decision of Judge John Murphy to reject, with costs, the application by COSATU and the Independent Communications Authority of SA (ICASA) to seek an urgent interdict to stop the listing of Vodacom and the sale of R22.5 billion worth of Telkom shares in Vodacom to the British company Vodafone.

It is particularly disturbing that the judge conceded that the applicant - COSATU - had a legitimate right to apply for such an interdict and that it might well have a good case for the public consultation on the Vodacom deal, yet he considered that the potential damage done to COSATU, by being denied the right to be consulted, was less than the potential financial damage to the respondents - Telkom, Vodacom and Vodafone - if he had interdicted the deal

It was a victory for money over people. COSATU was not just applying on its own behalf but to protect the interests of Vodacom workers and all South Africans, who we are confident will oppose Telkom's sale shares in Vodacom to Vodafone.

We remain convinced that the deal would remove any remaining South African control over the country's biggest cellphone company. When Telkom first acquired its 50% stake in Vodacom it was a publicly owned company, which gave the South African people a real stake. Even now that it is being privatised, the government still has a 38.3% share in Telkom and thus could exert influence on the policies of Vodacom as well.

But now that the sale is proceeding, Vodafone will have a 65% controlling interest in Vodacom. It is likely to be followed with the sale of Telkom's remaining 35% through a process of ‘unbundling'. Vodacom would thus turn into a subsidiary of a British multinational company, with no South African control at all. It is also highly probable that Vodafone will then want to ‘rationalise' their business and retrench workers.

The fight against this deal will continue. COSATU will be consulting with its lawyers on possible further court action to appeal against the decision, up to the Constitutional Court if necessary.

Meanwhile we shall be recommending the COSATU Central Executive Committee, on 1-2 June 2009 to endorse a total boycott of Vodacom. We welcome the support for such a campaign by the SA Communist Party, and will appeal to other and other unions to join the boycott and shift all their cell-phone accounts to other operators.

Statement issued by Patrick Craven, National Spokesperson for the Congress of South African Trade Unions, May 18 2009

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