Transnet chief executive Maria Ramos has agreed in principle to reconsider the transfer date of Metrorail — a move that could see the resolution of the long-standing impasse between the company and labour.
As expected, Ramos has also decided to suspend the disposal of Transnet’s long-distance bus service, Autopax, pending the outcome of a review by Minister of Public Enterprises Alec Erwin’s department.
However, she rejected labour’s proposal that workers be provided with written guarantees for five years.
The new developments are contained in a response by Ramos to a trade union memorandum of demands this week.
The South African Transport and Allied Workers Union (Satawu), the United Transport and Allied Union, the United Association of South Africa and the South African Rail and Labour Union have been in dispute with Transnet for more than two months over the company’s restructuring plans and have staged rolling protest strikes.
Transnet wants to sell its non-core assets and transfer two subsidiaries, South African Airways and Metrorail, out of its stable. It is estimated that selling the business units will raise R7,7-billion, which will be used to reduce debt and strengthen the company’s balance sheet.
The unions, however, insist restructuring will affect the job security and working conditions of 30 000 workers, but management says no jobs will be lost.
This week, more than 60 000 members of the four unions took to the streets in a nationwide strike to protest against what they describe as unilateral management decisions about restructuring. The strike is estimated to have caused the economy losses of more than R100-million.
Last week the unions walked out of mediation after it emerged that Transnet management had signed an agreement allowing Metrorail to be transferred to the South African Rail Commuter Corporation (SARCC) by month-end.
Ramos’s decision to shift the transfer of the railway passenger service from April 1 to May was influenced by Erwin’s intervention this week.
According to the minutes of a meeting between him and the unions, in possession of the Mail & Guardian, Erwin proposed that Metrorail’s transfer date be shifted to May. An inter-ministerial task team comprising of the departments of transport, public enterprises and treasury has been set up to look at the issue of pension funds. The unions fear workers may lose membership of their current fund.
Among Erwin’s other proposals are that his department should handle the Autopax issue and that regular strategic consultations should take place between him and labour regarding the transfer of SAA to the Department of Public Enterprises.
Ramos said the new developments should be read in the context of the emerging settlement of the dispute, which provided a welcome opportunity to start focusing on crucial areas of consensus instead of relatively minor points of difference.
”Transnet is committed to rebuilding its relationship with organised labour in a climate of trust that promotes collaboration, while recognising that this will require considerable effort from both parties and that we will not always agree on everything,” she said.
On job guarantees, Ramos said: ”We have made the point repeatedly that it is impossible to guarantee jobs for long periods in today’s world of work. Insisting on this in the case of certain disposals could discourage investors and oblige liquidation and loss of jobs.
”This is not to say that employment security undertakings are entirely out of the question in all disposals.”
Ramos said that when Transnet’s internal audit was outsourced to Ernst & Young last year, the company had agreed, at Transnet’s request in response to union representations, on a one-year employment security undertaking.
This was in addition to an assurance that employees would not be required to relocate for at least 12 months.
The unions said they would only respond to Ramos on Monday. Satawu’s Jane Barret earlier told the M&G that the basis for resolution of the dispute would be informed by management’s response to the union’s memorandum.