On July 1 the country’s 185 000 mini-bus taxi drivers will join the ranks of the formally employed, enjoying the benefits of a minimum wage, unemployment insurance and paid leave for the first time in the industry’s history.
The sectoral determination on the taxi industry announced by the Department of Labour recently, aims to formalise the sector from the bottom up.
Collective bargaining in the sector is difficult because of the large number of employers, and the fact that only 20% of workers employed in the taxi industry are represented by unions.
The determination has a set minimum wage of R1 350 a month for all taxi drivers and administrative staff, R1 080 for rank marshals and R945 for fare collectors and car washers.
Minister of Labour Membathisi Mdladlana stressed that the determination laid down minimum standards and warned that any attempts by employers to adjust wages downward to the minimum wage would be seen as an unfair labour practice. The determination specifies a 48-hour working week for all drivers, as well as rates and conditions for overtime; and makes provision for annual, maternity and sick leave.
According to Bheki Ntshalintshali, an Employment Conditions Commission (ECC) representative, sick leave is a serious concern for drivers. “In the taxi industry you can’t afford to get sick. You get sick and there is another driver tomorrow, for ever, and you end up hoping he gets sick so you can get your job back.”
During the launch of the sectoral determination, taxi owners muttered a running commentary, indicating that there might be a bumpy ride ahead.
“The problem is that we are putting the cart before the horses,” says Tom Muofhe, president of the South African National Taxi Council. “It is good for the taxi drivers to get a formal salary or wages; however, the conditions in general are heavy for the taxi operators and will lead to an increase in operating costs.”
Chairperson of the Top Six taxi association Sicelo Mabaso warns that the new regulations might force taxi owners to cut down on their fleets. “If the industry finds these changes unsustainable, the first victims will be the employees.”
The South African Transport and Allied Workers’ Union (Satawu) says it had been hoping for a minimum wage closer to R1 800, but that a good basis has been laid for future negotiations. Satawu spokesperson Ronnie Mamba emphasises that the union will need support from the labour department to ensure compliance.
Government research has shown that 65% of commuters using public transport travel by taxi. Taxi owners feel it is unfair that they are expected to bear extra costs imposed by the sectoral determination despite not being subsidised by the government. Bus companies receive R2,1-billion and commuter rail R2,4-billion in subsidies each year.
“Taxi owners are being asked to meet these new costs while not on equal footing with their competitors,” says Muofhe.
Owners say the taxi recapitalisation process, the electronic management system (EMS) and transport subsidies need to be finalised as a matter of urgency.
Under the government’s Taxi Recapitalisation Project, ageing minibus taxis will be replaced with new, safer 18- or 35-seater vehicles. The government will pay taxi owners R50 000 per vehicle to scrap their old minibuses. All new taxis will be fitted with a compulsory EMS designed to work with a passenger debit card system to pay for fares. The EMS device will record fares, fuel consumption, stops and starts and be able to switch off a vehicle’s engine in the event of overloading.
Taxi owners believe the EMS should have been implemented before the sectoral determination was rolled out.
“The taxi industry operates on a completely cash basis, no tickets are issued and so there is no control over what the driver hands over to the owner and what he puts in his pocket,” says Muofhe.
The introduction of the EMS will also mean that owners will for the first time have to pay tax on their earnings. Muofhe says this is not an issue. “We want to pay tax, we want to be on an equal footing with our competitors.”