Workers employed by two of Transnet’s business units want to become bosses.
They want the units’ activities to be outsourced to them, or for the shares to be sold to worker cooperatives rather than to private companies. These two assets are at the heart of the festering dispute between the transport parastatal and four trade unions. A national strike is planned for Monday, but may be postponed because it falls on the same day as Jacob Zuma’s trial. Permission to march has been turned down.
The business units, Propnet and Transnet Housing, are part of a set of non-core companies that Transnet has identified for sale, or whose services it will outsource to third parties. Propnet manages all Transnet’s properties while the housing unit assists workers with accommodation and housing.
Dumisani Ngwenya, a worker at Propnet and chairperson for the South African Transport and Allied Workers Union (Satawu), said an outsourcing agreement or sale of shares would enhance job security for workers.
“If Transnet is serious about broad- based black economic empowerment, this is the right time to do it,” Ngwenya said. But a subsidiary company of Tokyo Sexwale’s Mvelaphanda Group is a frontrunner to take over Propnet.
The national strike, which follows a set of regional protests, is a result of the company’s restructuring plans.
Ngwenya’s sentiments are backed by Satawu general secretary Randall Howard, who said the union would propose that a portion of the non-core businesses be sold to cooperatives owned by union members.
Four unions representing Trans-net workers — Satuwu, United Association of South Africa, South African Railways and Harbour Workers Union and the United Transport and Allied Trade Union — have been in a deadlock with management since January over what they describe as a unilateral decision by Transnet to restructure the company.
Transnet wants to sell its non-core assets and transfer two subsidiaries, South African Airways and Metrorail, to government departments as part of a turn-around strategy that will allow the company to focus on rail, ports and pipelines.
It is estimated that disposal of the business units will raise R7,7-billion, which will be used to reduce debt and strengthen the company’s balance sheet.
The unions say restructuring will affect about 30 000 workers, but management insists that no jobs will be lost.
Trade unions are not only concerned about job losses but also about changes to working conditions. Transnet workers enjoy high standards of benefits and wages that they could lose if transferred to other companies within the group, or if their units are privatised.
In an interview with the Mail & Guardian this week, Ngwenya said: “The idea is to bring all Trans-net properties together under one umbrella, to be owned by workers.”
“What Transnet could do is to establish a loan account, where workers can pay back the money to the company over a five-year period. Alternatively, workers could approach banks for loans,” Ngwenya said.
Propnet management was unavailable for comment this week, but it is unlikely it will give the idea the go ahead. Documents in the possession of the M&G show that Propnet is planning to outsource its services to Total Facilities Management Company (TFMC), owned by Mvelaphanda.
According to Propnet’s 2004/05 financial results the company lost R28-million last year. This, according to sources within Propnet, was as a result of the fact that some of its assets had a book value that was too high. This has now been written off and the company, sources say, is expected to make close to R100-million in profit in the 2005/06 financial year. In his submission to the Transnet executive committee, Propnet’s acting CEO, Rajan Desraj, estimated that TFMC would achieve a net gain of about R650-million from Transnet over five years.
Seekolo Moseke, a worker at Trans-net Housing, said Transnet Housing, which currently employs about 621 people, should be sold to workers.
Maseke said that, if the subsidiary was sold to banks, as Transnet has proposed, workers would lose their jobs.
Transnet spokesperson John Dludlu said real estate and financial services did not form areas of expertise for Transnet.
He said workers should follow internal avenues other than the press to make suggestions about the company.