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Ramos says the transport utility has sold its housing loan book to FirstRand
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May 16, 2006, 16:30
Transnet and the four unions representing its staff signed an agreement today governing the transformation of the parastatal. The signing marked the end of a dispute which began in August and led to two days of national strikes in March which crippled the transport industry.
It was an "important milestone" for Transnet and its relationship with the SA Transport and Allied Workers' Union (Satawu), the United Transport and Allied Trade Union (Utatu), the United Association of SA (Uasa) and the SA Railway and Harbour Workers' Union (Sarhwu), said Maria Ramos, the company's chief executive. Describing their talks as "challenging" and "trying at times", Ramos said both sides had learnt not to repeat their mistakes, but to have a relationship they could build on.
Even though there would be times when they disagreed, there was now a mechanism for working together which would stand them in good stead. "This provides us with a good basis to move forward," said Ramos. Negotiations over the restructuring broke down over accusations that Transnet was making decisions unilaterally and was union-bashing. At the time, the unions said they agreed in principle to the transfer of Metrorail and other non-core business units from Transnet.
However, they expressed anger at Transnet's lack of consultation with them on the signing of a sale agreement with the SA Rail Commuter Corporation setting April 1 as the date of transfer of Metrorail. They complained that they had not been told of working conditions under the agreement and were concerned at the possible loss of benefits through the transfer of pension funds. They suspended the strike after Alec Erwin, the public enterprises minister, intervened and the sale was delayed until May 1; a forum was set up in which to tackle differences; and joint labour-management teams were formed to work on the "shape and role" of non-core businesses and to reorganise functions of core businesses.
New deal – best of both worlds
Ramos would not disclose the cost of the strike, describing the dispute only as "costly, difficult and tense." George Strauss, the Utatu president, said: "The cost was high. That is why we signed today."
Under the agreement, staff working for Transnet assets - like Metrorail and SA Airways - which were sold to other state-owned entities would remain part of the Transnet pension fund, to which their new bosses would contribute. However, where assets were sold to the private sector, Transnet would ensure workers got "the best deal possible", said Ramos. The unions had wanted all retirement benefits in all three Transnet pension funds guaranteed by the new employer, whether state or private.
Ramos said the agreement contained the principles on which restructuring would take place. A number of schedules were attached with "quite a lot" of detail, including timeframes similar to those originally envisaged by the parastatal. She said Transnet would continue to meet the unions in a forum which would meet under her chairmanship four times a year to discuss strategy.
Agreement is "well-balanced"
Randall Howard, Satawu’s secretary-general, described the agreement as a "well-balanced" product which found a middle-ground between the interests of Transnet and workers. Strauss said it was important for Transnet's clients to note that the improved relationship was to their benefit. It was also in the best interests of both employees and the company, said Sarhwu's Shadrack Ntuli.
Maryna Kleynhans, an Uasa manager, said: "We regret we had to strike to get this on the table." Ramos also apologised to commuters and clients for the strike and thanked them for their support and understanding, explaining that the agreement thrashed out might prevent having "to go down this route" in the future. - Sapa
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