strike
21 February 2006
Today I received yet another petition from the unions in Transnet. In
response I need to once again state the position of Government on this
matter.
I am certain that there has been more than enough opportunity for
consultation on the structure of Transnet. In my budget speech in June 2004 I
set out the basic approach. This was that Transnet would remain a State Owned
Enterprise (SOE) and that it would focus on freight and pipeline
transportation. The passenger rail services would be combined and placed under
the direction of the Minister and Department of Transport. As such Metrorail
would remain a public entity. The logic of this move is to make the provision
of passenger rail more efficient and to consolidate the investment and subsidy
process required for passenger transport. It was absolutely necessary to change
the previous situation where part of passenger rail was with transport and
another part with Transnet. Such an arrangement was inefficient and not in the
interests of commuters.
I also explained the reasons behind moving South African Airways (SAA) to a
stand alone SOE reporting to the Department of Public Enterprises. The position
of employees is not affected by this move as Transnet and SAA are separate
employers as it stands now. Any pension related matters will be resolved with
no impact on the workers.
I also made it clear that the disposal of the non core assets was in the
best interests of all concerned as they needed shareholders committed to those
enterprises. These activities located in Transnet were not receiving attention
as they were marginal to the more important business activities of the group.
Where the activities were important such as those in Transwerk we have
clarified the situation and said that they would stay within Transnet. In fact
their work load will increase.
On all the above matters I have had lengthy engagements with the unions and
gone into our thinking in detail. The management of Transnet have continued to
consult within the structures that emerged from the NFA. I have reviewed the
documentation and discussed the matter with the unions and I believe that the
assertion that there has not been consultation and that management are arrogant
is not sustainable. What is really frustrating and not in the interests of the
workers is that many of these issues have been under consideration for three or
four years. The effect on the management of housing and Autopax has been very
adverse to say the least. These matters have taken far too long and the new
Board and Chief Executive Officer correctly decided that it was in everyoneâs
best interest to move with speed and provide certainty.
In response to the current strike action, and in order to make progress, the
management have made new proposals to ensure more efficient consultation. These
responded to union documents. Last Friday management indicated that it would
agree to mediation and now await a response from the unions. The doors for
negotiation and communication have remained open and the proposals made by
management included a process with the Ministry. These proposals are
improvements on the cumbersome processes of the NFA, which has largely fallen
into disuse, making its status unclear. The management have made other
important proposals to improve the situation.
I will be consulting with all the union federations as to removing
uncertainty about the NFA.
I and the management have given repeated assurances that there is no
intention to remove or reduce pension rights. We have also made it clear that
the restructuring of Transnet is not based on plans for mass retrenchment. It
has been the policy and practice of government and the SOE to protect workers
rights in any disposal. In addition the Labour Relations Act (LRA) provides
protection. However, as has been the case in the past each transaction has to
be specifically dealt with if we are to ensure the success of the transactions.
If the transactions are not successful then the alternative is closure of these
activities within Transnet and that cannot possibly be our objective.
However the only practical way to deal with these matters is in specific
negotiations once potential buyers or partners have been identified. This is
what management have proposed and it is what I support. Trying to deal with all
these details at one central Transnet restructuring committee is not possible
and will merely delay these processes for many more months by which time it
will be too late.
The redesign and improved efficiency of Transnet and its divisions is an
absolute priority for this economy. Accordingly speed is of the essence. The
time taken in the current situation is delaying major projects in Spoornet,
National Ports Authority, South African Port Operations, Petronet and
Transwerk. These projects are not only important for the national freight
system but will provide many thousands of job opportunities for unemployed
workers in the wider economy. These projects are of such critical importance to
South Africa that we cannot delay them in any way.
As the President stated in his State of the Nation Address this is a time of
hope and opportunity. We need to proceed with haste. Whilst we will always
respect the right to strike we can nonetheless say that this strike is
misguided and we cannot see what its clear objective is. If there is a view
that all decision making in the SOE must be done jointly with the unions then
we must make it quite clear that such co-determination is not and has never
been the policy of the African National Congress (ANC) and government. Our
system is one of strategic consultation which has taken place and collective
bargaining in terms of the LRA where the unions are now exercising their rights
to strike. Government has a responsibility and a duty to set the strategic
direction of the SOE and it will continue to do this, as it will continue to
consult widely in preparing its decisions.
It is time to move forward to build and strengthen Transnet and not to
needlessly inconvenience commuters who only stand to benefit from the new
location of Metrorail and the funds that will be directed to commuter rail.
We have experienced and mature negotiators on both sides and continuing that
process in a form that will solve problems is what is needed now.
Enquiries:
Ms Gaynor Kast
Ministerial Spokesperson
Cell: 083 271 4350
Issued by: Ministry for Public Enterprises
21 February 2006
Source: Department of Public Enterprises (http://www.dpe.gov.za/)
