jobs
29 January 2006
The future role and structure of Transnet is very much in the news at
present. And there is the possibility of a strike. In the normal course of
events industrial relations is a matter for the Board and Management of the
State-Owned Enterprises to resolve. The right to strike is protected and if the
unions feel strongly enough it is their prerogative to exercise that right. The
issue at stake is the restructuring of the enterprise and whether the
management has consulted on this sufficiently. Since the issue at stake is the
structure of the enterprise and its future role it is important for the
economic actors to know whether the shareholder supports the process and the
changes envisaged.
We are entering a phase of accelerated growth and Transnet is at the centre
of this as it improves its efficiency and invests very heavily in new
infrastructure. It is necessary as Minister responsible for the enterprise to
indicate unequivocally that the proposed restructuring is fully supported. It
is in fact absolutely essential that we proceed and do so with the requisite
speed. In making these decisions and preparing for them the principle of
consultation with the unions has been critical. We are not trying to bulldoze
things through or override the concerns of the unions.
Transnet has to become a focused and efficient organization; this can only
be achieved through a significant restructuring. Such a restructuring is not
based on the expedient strategy of firing workers to reduce costs but rather is
based on the need to restructure the organization into a focused freight
organization in ports, rail and pipelines. We have to invest in more
infrastructures, improve the operational efficiency in the main a managerial
problem â and ensure that management and the Board can focus on these needs and
not be distracted by the time consuming requirements of managing non-core
businesses.
We have experienced managers and experienced unionists who are on top of the
issues and understand what is at stake. I am also absolutely sure that they
will keep the lines of communication open and conduct themselves within the
very fair dispensation that now characterises our labour market and industrial
relations. The differences are indeed real and they relate to differing views
as to how exactly matters should be decided and what processes should be
followed. In my view the Board and Management must make decisions within the
strategic framework agreed by government and as they implement these decisions
they must consult the unions and the unions must exercise their role of
protecting the rights and position of their members. Any sensible change that
emerges from such negotiation and consultation will be accommodated.
However, all the detail and problems across the many divisions and within
the disposal process of the non-core operations cannot be dealt with in one
endless and on-going bargaining chamber. An insistence on this by the unions
will delay an essential process at the expense of the economic growth.
Growth and employment are the essential objectives now. Inefficiency and
under-investment by Transnet is very costly for the whole economy. There have
been claims that the restructuring will result in massive job losses. This is
absolutely wrong. It flies in the face of reality and as I have stated very
firmly, this exercise is about reorganizing the enterprise not about slashing
costs through reducing staff. In an enterprise the size of Transnet there will
always be issues about the staff complement at any point or in any division. To
say that this would not be the case would be to wilfully mislead everyone.
However, our labour relations act is designed to deal with these situations in
a manner that is manifestly fair. So what is at stake is not a zero sum game of
workers versus costs. What is at stake is the speed with which we can invest,
move our freight and train our workers.
The challenge facing leaders is that they have to make decisions in the
wider interests of the economy. In my own meetings with the union leaders I
hope that I have clarified these issues and whilst they are experienced leaders
who will lead their unions as best they can, I am comfortable that we have been
entirely open as to what the issues are. I also am fully in support of their
right to address the Parliamentary Portfolio Committee in February. So there is
no intention to stifle their views. This is not some battleground; it is a
process certainly difficult at times of working out what is best for the
economy.
I just want one thing to be very clear there are not, I repeat not thousands
of jobs at stake, if the union leaders want to try and shape bargaining in the
future by striking now that is one matter but no worker should go on strike
thinking they are defending themselves against massive retrenchment as this
would be wrong. The doors of dialogue are open and I am personally very
confident about the future of Transnet. As we have warned all strikes are tough
and we must always be sure we know how to end them if we take the major step of
starting them.
Enquiries:
Ms Gaynor Kast
Cell: 083 271 4350
Issued by: Department of Public Enterprises
29 January 2006
Source: Department of Public Enterprises (http://www.dpe.gov.za)
