Union demands place at Telkom talks

Johannesburg, 07 Sept 2007

The Communications Workers Union (CWU) will find it difficult to allow a "possible divorce" between Telkom and Vodacom, it says.

In a statement, union spokesman Mfanafuthi Sithebe says this is due to organised labour not being invited to participate in talks.

Earlier this week, Telkom issued a cautionary to shareholders stating it was in discussions with Vodafone and MTN. This follows its June announcement that it was reviewing its mobile strategy.

Seconds later, MTN issued a cautionary declaring it was in discussions with Telkom which "may or may not" result in a transaction involving certain of the fixed-line giant's assets.

According to Sithebe, Telkom's recognised union has not been invited to participate in the discussions.

"Organised labour is neither a bride nor a groom to the planned wedding between MTN and Telkom, let alone the possible divorce with Vodacom. We find it strange that a cautionary notice has been issued by one of the potential buyers, alerting investors to trade carefully, but no briefing given to organised labour," he says.

In response, Telkom's group executive for corporate communication Lulu Letlape reiterates the company's original response.

"As part of our review of our mobile strategy, Telkom is currently in discussions with Vodafone Group and MTN Group. These talks are still at a preliminary stage and, therefore, it is not possible to disclose further details," she says.

The CWU is pleading with all parties, including the country's government, to ensure internal stakeholders are "properly consulted" in any planned transaction.