UTATU United Transport and Allied Trade Union

Companies and unions call for government intervention
May 19, 2010

The ongoing Transnet strike could have been prevented as the United Transport and Allied Union (Utatu) had warned the Minister of Public Enterprises Barbara Hogan as early as January about possible industrial action, the union said yesterday.

Steve Harris, the general secretary of Utatu, said this week that the union had given warning of the possibility of a strike in a letter sent in January. The letter, which Harris said had not been acknowledged, highlighted the unhappiness among its members over the "massive incentive bonuses" paid to management.

The Department of Public Enterprises said it had acknowledged the letter in March and had forwarded it to the Remuneration Advisory Panel, which was established in the same month to make recommendations on executive pay at state-owned enterprises.

The minister also requested that Transnet's board investigate the matters raised by Utatu and report to her on this issue, which it had recently done. The board's response is being assessed by the department and will also be sent to the advisory panel for analysis.

Transnet human resources executive Pradeep Maharaj said state-owned enterprises were expected to perform and had to compete with the rest of the market for skills.

He said executive remuneration at Transnet, excluding bonuses, had declined in real terms over the past five years. In the year to March 2009 the bonuses paid to management fell by 33.6 percent.

Meanwhile, the Transnet strike entered its ninth day today, effectively halting the import and export of containerised goods and hindering the export of commodities.

For the manufacturing sector, which is already struggling with the weak dollar and euro, the strike has exacerbated the situation.

Gary Bell, the chief executive of Bell Equipment, said the government had not done enough to avert or end the strike. "Someone now needs to stand up and it probably needs to be the president," he said.

The unions were also seeking government involvement with Robert Mashego, the president of the SA Transport and Allied Workers Union, saying there was a need for political intervention to end the strike.

The threat of secondary strikes in associated industries has increased the risk of greater damage to the economy. Cosatu said it would not hesitate to mobilise its 2 million members to launch solidarity action if Transnet did not come up with an improved offer. - Additional reporting by Sapa.