The United National Transport Union’s (UNTU) worst fear, for its thousands of members in Transnet, became a reality when Africa’s rail leader offered voluntary severance packages to all its employees due to the dire global economy.
Eddie de Klerk, Deputy General Secretary of UNTU, says the Union warned its members in November last year that job losses in Transnet could be on the cards if there were no turnaround in the economy.
“Unfortunately, this did not happen. On Monday Transnet informed the leadership of UNTU that the global growth outlook has weakened in recent months and resulted in a sharp slowdown in the demand on Transnet’s services by other developing countries.
“At the same time the outlook for the South African economy has also deteriorated. Transnet informed UNTU that it is severely impacted because of the challenging economic conditions with a poor forecast of improvement any time soon,” says De Klerk.
According to Transnet, the offering of voluntary severance packages to all employees’ forms part of several options the state-owned enterprise is considering, to ensure its long-term sustainability of the business.
In terms of a multi-term collective agreement Transnet signed with UNTU earlier, the company cannot force retrenchment until the end of the next financial year, ending 31 March 2018.
Therefore, Transnet at this stage can only offer voluntary packages and voluntary early retirement packages.
“As the majority Union in Transnet UNTU will never be in favour of severance packages, irrespective of whether it is offered voluntarily or forced. UNTU is of the view that with the grim economic situation as it is, it is in the best interest of our members to remain in employment for as long as possible. As it is voluntary packages that are on the table, the Union’s hands are tied if members decide to apply for them,” says De Klerk.
De Klerk says that individual members should carefully consider the following; if they can afford taking packages, if they will be able to find alternative employment or start up their own business to sustain their income or if they have saved enough money to survive an early retirement.
Although UNTU is empathetic towards Transnet’s situation, the Union is still of the view that this could have been prevented, had there been proper leadership by Public Enterprises Minister Lynne Brown, who oversees Transnet, and Transport Minister Dipuo Peters, who oversees the Passenger Rail Agency of South Africa (Prasa), says De Klerk.
“This was never the dream when Prasa was established, because of a Cabinet decision driven by the Legal Succession Act of the South African Transport Services as amended in November 2008. It was supposed to be two booming companies in the South African rail sector.
“But the sad reality is that fraud and corruption, mismanagement and irregular expenditures experienced in both companies, which have added to them struggling. Prasa is the worst affected facing a possible complete collapse.
“Where is the leadership from both Ministers? Why did they not ensure that Prasa commissioned Transnet Engineering to manufacture its new urban passenger trains instead of wasting billions to buy them in Spain? Now more billions must be wasted to adjust the platforms to make provision for the smaller trains. This could have been prevented if the Ministers showed true leadership, insight and intervened. Where is the cooperation between the two companies?” says De Klerk.
UNTU once again appeals to Government to intervene and save jobs at Transnet, as any job losses will have a further negative impact on the South African economy which will affect the pocket of each tax payer.
For more information contact Eddie De Klerk on 082 567 6638.
Issued on behalf of UNTU by Sonja Carstens, Media and Liaison Officer. For UNTU Press Releases e-mail sonja@untu.co.za or phone 082 463 6806.
