"Cosatu calls on the City that if public funds are being spent on the stadium, then it should be spent in a way that the most vulnerable people of Cape Town benefit," the Union said in a statement.
"We believe that the building of low-cost housing in Cape Town central will go a long way to integrate communities across colour lines.
"The community of Green Point, who do not want further commercial activities in the stadium, should support the plans to promote the building of affordable housing in the city centre. Should the Green Point community oppose this housing plans, then the real intention of the objections are exposed as protectionist?
"This represents an important opportunity to integrate black and white communities, which we should not miss out on. The City has not been promoting black and white communities across the class divide, and here is an important opportunity."