Transnet management gave notice that it would press ahead with its decision to dispose of non-core business units and announced its appointment of Standard Bank as its transaction adviser. It also announced that Metrorail would be transferred into the South African Rail Commuter Corporation (SARCC) under the Department of Transport by way of sale agreement.
All this while the parastatal braces itself for a nationwide strike that will see more than 60 000 Trans-net workers down tools to protest against the company’s restructuring plans.
The strike, which was originally planned for Monday, was postponed because of the start of the rape trial against former deputy president Jacob Zuma.
A last-minute meeting between union leadership and Minister of Public Enterprises Alec Erwin with the aim of averting the strike was held on Thursday.
Despite the ongoing altercation, the company has already revealed the next step in its turn-around strategy aimed at reshaping Transnet into a rail, ports and pipelines company.
The transfer of Metrorail from Transnet is set to take place by the end of this month. However, labour unions plan to lodge an urgent interdict on Friday to prevent the company from implementing its turn-around strategy.
South African Transport and Allied Workers Union (Satawu) general secretary Randall Howard said the unions had also decided to suspend their participation in the mediation process headed by Charles Nupen.
Howard said the unions only became aware last Saturday, during the pre-mediation meeting, that Transnet had signed an agreement to transfer Metrorail to SARCC.
“Labour is of the opinion that mediation cannot continue while a spectre of the sale agreement hangs in the background and unilateral decision-making and implementation continues.
“In effect it means, if the process had not been discovered during last Saturday’s meeting and had continued, Metrorail workers would have woken up on April 1 with a new employer and without any assurances of job security, guarantee and conditions of service and pension benefits,” said Howard.
United Transport and Allied Trade Union general secretary Chris de Vos said the agreement to transfer Metrorail would have a detrimental effect on workers belonging to the exisiting pension fund because of their vested tax rights.
Until March 1998, all Transnet employees were exempt from paying tax on a lump-sum withdrawal. De Vos said an agreement was reached between the government and labour that all vested tax rights would remain free for workers employed by Transnet before 1998.
“Our concern now is that our members will forfeit their tax-free status if they are moved to another company,” De Vos said. He argues that workers should retain membership of their current fund.
However, Transnet spokesperson, John Dludlu gave assurances that neither the benefits nor the conditions of service would be negatively affected by the transfers.
“As an example, after the transfer SAA [South African Airways] — which is being migrated over to the Department of Public Enterprises via a share transaction — will still be the employer. The same applies to Autopax, which is due to be sold to the private sector,” he said.
Dludlu added that the transfer of Metrorail cannot be postponed indefinitely, as it has been on the cards for almost a year now.
“Besides, no reasons have been given to us on why the transfer cannot be effected effectively, sensitively and effectively [sic] on April 1 2006.” Dludlu said Transnet had already reached an agreement with the SARCC and the Department of Transport on the terms and conditions of Metrorail staff.
“No Metrorail employee will be worse off as a result of the transfer of Metrorail to the SARCC, which will be good for the commuter public. That [much] the unions have not opposed. We have ensured that the benefits, housing, travel concessions and pensions are protected and not adversely affected by the transfer,” said Dludlu.
But Howard described Transnet’s comments as untrue and arrogant.
“The reality is that the unions were not involved in the agreement regarding the transfer of Metrorail. There are still a number of outstanding issues in as far as pension funds are concerned.
“What we are dealing with here is dishonesty, because what Trans-net management is saying about consultations is what we are [still] demanding.
“Our position has not changed and unless Transnet and the government concede that unilateralism undermine labour, we will strike until the attitude change.”
The unions demand that existing guarantees for Metrorail workers be transferred in their current form.