Labour unions were “disappointed” that they had been left out of the process to select a CEO for state transport and logistics giant Transnet.
On Wednesday minister for the Public Enterprises Department Malusi Gigaba announced the appointment of Brian Molefe as the head of Transnet.
Molefe formerly headed up the Public Investment Corporation.
“We are disappointed that we were left out of the process,” said president of the South Africa Trade and Allied Workers Union Ezrom Mabyana.
“We thought we would have made a contribution but we were not included in the process.”
He told the Mail & Guardian that although Satawu “did not know him well” the union welcomed the appointment and was willing to “give him a chance”.
Similarly Steve Harris, the general secretary for the United Transport and Allied Trade Union (Utatu), said unions had not been consulted during the process. Nevertheless, Molefe’s extensive experience — particularly in finance — was encouraging, said Harris.
“We just hope he has compassion for the human element of the business,” he said.
Transnet which had been without a permanent CEO for almost two years. In the months preceding Molefe’s appointment former head of Transnet Freight rail, Siyabonga Gama, was short-listed as a possible candidate for the job but dismissed from the company for misconduct.
Sipho Maseko, head of BP South Africa, had also been tipped as a possible candidate for the job.
Privatisation fears
Since Ramos quit in March 2009, former CFO Chris Wells stood in as acting CEO for over a year. Then in December last year newly appointed chairperson of the Transnet board Mafika Mkwanazi took on the role of both chairperson and interim CEO until Molefe’s appointment was made.
The choice of a black man to the position was very welcome, said Mabyana.
But Satawu remained concerned over the threat of privatisation at Transnet and the sale of various business units, he said.
“We are hoping that the new person will alleviate these concerns of the workers,” said Mabyana.
Last year Transnet and workers went through a bruising round of wage negotiations and this year the process is not expected to be any easier.
According to Harris, there were unresolved issues which could affect the next round of salary talks, earmarked for mid-March.
They include the issue of a housing allowance for employees, effectively removed in 2010, concerns over medical aid costs, as well as the unhappiness over the company’s incentive scheme.
“We are expecting difficult negotiations,” said Harris.