A workshop was held yesterday, (18 October 2016) between Labour and Transnet Management under the auspices of the Transnet Bargaining Council (TBC).
Presentations were made by various Managers inter alia: – on the Market Demand Strategy (MDS), the current financial position of Transnet, Customer Services Survey, Transnet Value Chain Co-Ordinator (TVCC), Transnet Operation Centre (TOC) and the rational on Alignment of Shift Patterns.
Arising from the above presentations by Transnet it was clear that they are driving “One Company” (One Vision).
The current financial position of the company is not what is should be. Year to date (YTD) EBITDA is far below the budget. Transnet is at risk of being downgraded, should this happen it will bring about significant increase in the costs for existing loans.
The deviation of actual profits vs the previous year has decreased by 42.3%.
The presentation with regards to the Transnet Operation Centre (TOC), emanated from Container and Automotive (TVCC) to deliver a total seamless Transnet Supply Chain Operational Plan, enabling efficient Service Delivery and Customer Satisfaction.
The Transnet Operational Centre (TOC) must implement and manage a fully integrated Supply Chain Plan from Vessel to Inland Terminals and deliver efficient service to customers. In reverse, there is to be a fully integrated Supply Chain Plan for exports from Customer to Port and Customer Terminals.
Transnet Value Chain Co-Ordinator (TVCC) is a strategic initiative that has been prioritized by the Transnet EXCO already in 2014 with the aim to mitigate Market Demand Strategy (MDS) delivery risks.
TVCC’s primarily focus remains to: –
- Deliver on agreed business benefits.
- Improvement through meeting customer expectations and demands.
- Driving continuous improvement initiatives.
- Improvement in Supply Chain Co-Ordination.
- Integration across Transnet Operations.
The new Operating Model sets out the role and functions of Transnet’s Corporate Centre and drives the integration of the Operating Divisions.
The introduction of the Transnet Value Chain Co-Ordination (TVCC) drives integration and the Transnet National Operating Centre, creates the framework for integrated planning.
Management’s aim with the alignment of Shifts is to ensure that all Operational Divisions works forty-four (44) hours per week.
The principles for Shift Alignment: –
- 24/7 Operations for the Operating Environment.
- Any five (5) out of seven (7) days in any week.
- Standard twelve (12) hour Shift, seven (7) days a week (06h00-18h00) and (18h00-06h00).
- Seamless Shift Change Overs, where Operating Divisions interface.
- Operational Efficiency, with limited loss of production time through Shift Changes.
- Reduction of Scheduled Overtime.
- Weekly Averaging of Overtime, over a three (3) week period.
- BCEA compliance in line with 24/7 Operational requirements.
We wish to emphasize that no negotiations to date have taken place on any of the presentations. However, Labour was afforded the opportunity to obtain clarity on the various presentations by Transnet Management.
These issues for engagement are very complexed, thus Transnet proposed the use of a facilitated process.
The next meeting is scheduled for 27 October 2016 and during this meeting the process of future negotiations will be confirmed.
UNTU Greetings,
SA Harris
GENERAL SECRETARY
