The Portfolio Committee on Public Enterprises engaged with organized labour this week to discuss the governance, financial, and service delivery challenges at Transnet, South Africa’s state-owned transport entity.
According to Parliament of South Africa, the Congress of South African Trade Unions (COSATU), the South African Transport and Allied Workers Union (SATAWU), and the United National Transport Union (UNTU) all made presentations. The meeting was timely, considering the recent governance challenges at Transnet, marked by the resignation of several top executives.
COSATU expressed extreme concern about the deteriorating state of infrastructure, finances, and management at both Transnet and Portnet. They highlighted the rapid decline in governance and the mass resignation of senior leadership. SATAWU emphasized the need for investment in infrastructure and rolling stock to allow the rail sector to compete with road freight. They also advocated for the purchase of new environmentally friendly machinery and refurbishing the old, to enhance productivity and reduce carbon emissions.
UNTU attributed much of Transnet’s current predicament to the legacy of state capture. They also pointed out that the practice of financing debt with more debt adversely affects Transnet’s cash flow, thereby limiting funds available for operational costs and crucial capital investments.
Committee chairperson Mr. Khaya Magaxa acknowledged these challenges and the unions’ perspectives. He indicated that some of these issues would be addressed in an upcoming meeting with Transnet. The committee emphasized the importance of understanding the collective situation from the unions’ viewpoint.
In response to questions about private/public partnerships (PPPs), SATAWU criticized the government’s implementation of these partnerships, arguing that they cannot resolve the issues in the road freight sector and were forced on employees against the unions’ objections.
Mr. Magaxa concluded that the presentations provided a clearer understanding of the situation among Transnet’s employees. The information was issued by the Parliamentary Communication Services on behalf of Mr. Magaxa.