LETTER: Vodacom’s greedy capitalists

Sydney Kaye’s comment that Nkosana Makate is asking too much from Vodacom shows a basic lack of understanding of the economic reality of the situation (“Nkosana Makate got more than enough”, February 10).

The Please Call Me concept generates revenue running into billions of rand for Vodacom. This revenue stream will run as long as Vodacom uses this concept in all its markets. The shareholders of Vodacom are subsequently appropriately benefiting yearly in the form of dividends received and an appreciation in the Vodacom share price.

Makate has been generous by asking for 5% of the revenue generated instead of the normal 10% for a limited time period. This is essentially royalty income and reasonable compensation should run infinitely, since Vodacom is unlikely to stop using this moneyspinner.

Vodacom’s measly offer of 5% of the revenue for five years was done in bad faith. It reflects the greedy side of capitalism, which endeavours to exploit workers in circumstances like this.

Jeffrey Mothuloe
Via email

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