South African transport utility Transnet is not a job creation agent and the best contribution it can make is not to grow its number of jobs, says Transnet CEO Mario Ramos.
Addressing the National Assembly public enterprises portfolio committee on Wednesday, she said bluntly: “There may be areas in which [we] will employ people but the best contribution that Transnet can make to job creation is not to grow the number of jobs in Transnet.”
“It is actually to create the opportunity in our economy,” she said.
She noted that developing economies such as Brazil, India and China are spending far less, as a percentage of gross domestic product, on transport costs.
Arguing that ultimately the operational integration with the private sector of the rail and ports component of the business is the vision of Transnet, she said instead of Transnet being a burden on the public purse, “we should make a contribution”.
At present, Transnet is not paying dividends to its shareholder — the government — but has instead gone to the government for R10-billion-worth of guarantees “in a space of a few months”.
Talking about jobs, she said that at management level there will be “a significant reduction” in the current 600 members of staff at Transnet head office. Changes will take place in the next 18 months.
She also said that there has been a notable agreement by CEOs in the Transnet group not to take salary increases — or bonuses — in the current financial year, with the possible exception of South African Airways.
Ramos said that until the businesses turn around, they cannot accept such increases. — I-Net Bridge