SARAH BULLEN, Cape Town | Monday 3.45pm
Public Enterprises Jeff Radebe on Monday dismissed reports of large scale layoffs at rail parastatal Spoornet as premature and speculative.
Radebe said that Spoornet has not yet been formally identified as a candidate for restructuring under the National Framework Agreement — an agreement governing the privatisation of parastatals.
“Indeed, this matter is due for discussion at the next NFA Transport Sector Committee meeting this month. Secondly, the proposals that you have heard about represent a work in progress at this stage. “The Transnet Board has given Spoornet the go ahead to investigate a particular option further.”
However, government has not yet been formally briefed on any proposals, nor have there been any approval of any proposals for the restructuring of Spoornet by government as the shareholder, Radebe added. Radebe’s comments come amid a rising confusion as to the the quantity, timing and even the existence of the reported job cuts.
SABC TV reported on Thursday that Spoornet spokesman Johan Hugo said that Spoornet is to take “drastic action” to reverse its huge losses incurred largely due to due to losses in General Freight Business, the largest unit in Spoornet. A Spoornet statement last week said that: “The negative position of Spoornet is not going to reverse itself without drastic action. Cash flow will continue to deteriorate without a fundamental readjustment of resource levels to market conditions.”
In a meeting on Friday, July 2, Spoornet management met Transnet’s board to discuss transformation of the division. The statement said transformation will require “right-sizing” of staff and assets in order for the division to reach its growth targets. On Friday Transport and Allied Workers’ Union president Bonakele Jonas promised “rolling mass action” by some 40000 rail employees aimed at stopping the parastatal from going ahead with the layoffs.