Labour grumpy over Transnet privatisation plan

Untu has drawn a line in the sand on signing any agreements pertaining to Transnet’s Public Sector Participation programmes until the state logistics utility shows transparency. Kopano Tlape

Untu has drawn a line in the sand on signing any agreements pertaining to Transnet’s Public Sector Participation programmes until the state logistics utility shows transparency. Kopano Tlape

Published Jul 10, 2023

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The United National Transport Union (Untu) has drawn a line in the sand on signing any agreements pertaining to Transnet’s Public Sector Participation (PSP) programmes until the state logistics utility shows transparency and addresses a myriad outstanding issues, information and questions.

Container ships on Cape Town. Labour unions are concerned they don’t know the full details of the private participation programs at the ports. Pic: Leon Lestrade

Earlier in the week, Transnet met Untu and the South African Transport Workers Union (Satawu) over two days, where no clarity was obtained by organised labour on Transnet’s execution of the PSP programme, which Transnet had started by handing over the C101 berth in the Port of Ngqura to a private sector group despite concerns from labour.

Labour is concerned about the fate of the more than 45 000 workers employed by Transnet and the possible repeat of “Gupta incidents” if the process leads to the benefit of politically connected people.

"Untu has repeatedly expressed to Transnet management that recognised labour and the concept of ‘meaningful consultation’ have been undermined since the beginning of the engagements and throughout the engagements regarding the incorporation of private strategic partners into the Transnet ports,“ Untu spokesperson Atenkosi Plaatjie said.

The union said that while Transnet management had invited labour organisations to several meetings to discuss PSPs, it had “failed to hold meaningful consultations which involve, consulting in good faith, in a way that gives the interested and affected persons all the relevant information, and reasonable time and opportunity to make an informed decision regarding the impact of the proposed activities and carefully considering the views of all involved”.

"It is clear to Untu leadership that the government and any other external forces unknown to Untu are willing to push for private sector participation at Transnet ports, against all odds and with or without recognised labour.“

Untu said Transnet management had failed to answer key questions from labour pertaining to its PSP plans and has not been open about the analysis and results of the skills shortages within Transnet, especially if PSPs were implemented; what would happen to employees who did not meet the skills required for positions needed by a PSP; which employees would be transferred from Transnet to the PSP; and which process would be followed to determine that.

The union wanted to know whether employees would be remunerated for overtime and receive a shift allowance.

The union did not know what organisational structures were being discussed, so it was impossible to verify how many Transnet employees would be used to perform work under the PSP banner, versus how many employees would not be used by the PSPs.

The union said there was also no guarantee that there would not be retrenchments after 12 months of the PSP taking over management of the ports.

Workers also wanted to know how the “modernisation” of the ports would affect the organisational structures and staff complement.

There were also no answers from Transnet on how the board and exco of Transnet and the PSP would be structured and function.

There were questions on how the relationship between Transnet and the PSP would look regarding personnel-related matters, such as performance management and disciplinary action.

No indication was given of how much money the PSP would inject into Transnet and no timelines provided regarding when the injections would take place. The asset value of the individual ports and how the PSP would increase such asset values during their “concession periods” had also not been clarified.

“The consultations that have been done thus far have not been done in good faith, nor has it been anywhere close to what should have been a meaningful consultation process. This whole PSP process has been shrouded in secrecy and vague unclear answers, clear from the non-disclosure agreements that had to be signed by labour, even now, on the brink of an announcement of who the successful PSP provider is,” Untu said.

Transnet is following a procurement process through a request for proposals, and a preferred bidder to handle break-bulk commodities (general cargo) at the Port of Ngqura, for five years had been identified.

“The strategic intent is aligned with the ports authority’s mandate to create opportunities for new entrants in port operations. One of the strategic objectives of the multipurpose terminal project is to promote the creation of new jobs,” Transnet said.

It said the process of appointing a terminal operator had been an open, fair, transparent and competitive process when awarding rights to operate within its ports.

“It is important to note that this would be a new operator licence, and none has been revoked. The process was open to any interested parties to participate,” Transnet said.

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