The Communication Workers Union (CWU) is fuming following the Competition Tribunal's approval of Vodafone's buyout of local mobile giant Vodacom.
CWU spokesman Gallant Roberts says the union was never consulted on the deal and pertinent merger documents were only given to it in January. He says the union will meet to discuss what recourse it has now that the merger has been approved.
According to both the union and the tribunal, the CWU formally opposed the merger with the tribunal and made its concerns known during the oral hearings. However, the tribunal approved the deal yesterday without condition.
The first concern was that the companies did not consult the union management on the merger, an issue, which Roberts claims, the union had a right to participate in. He says the union was handicapped during the merger process, since it did not have access to promised merger documentation.
He explains that the union management is concerned not only for members employed at Vodacom, but for those at Telkom. “Telkom will lose money without Vodacom and that means Telkom will probably go through with restructuring. The worker is always the first casualty.”
Vodacom reacts
Meanwhile, Vodacom is pleased with the outcome. Chief communications officer Dot Field says: “We welcome this ruling.”
The Competition Tribunal ruling will see Vodafone take another 15% of Vodacom's issued sale capital from Telkom. Telkom will unbundle its remaining 35% shares in Vodacom to its own shareholders, which, according to the tribunal, are members of the public.
The 50:50 partnership between Vodafone and Telkom has reportedly been a contentious one, and analysts have noted the companies would be better off apart.
Vodacom will now be able to access Vodafone resources that had previously been held back from Vodacom, because of the agreement with Telkom. It will, for example, now have access to Vodafone's research and development investments.
The first of these is the company's exclusive distribution rights of the BlackBerry Storm, a device built by Vodafone and Research In Motion.
Vodacom will list some time around the middle of this year.
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