The Passenger Rail Agency of South Africa (Prasa) continues to advertise vacancies externally, while threatening Labour that its offer of a 7% wage increase would lead to the unavoidable rationalization of the passenger rail operator workforce, which would result in job losses.
“The management of Prasa must think the leadership of the United National Transport Union is stupid by pleading poverty, warning of a possible total collapse of its services, threatening that it might not even have the money to pay out salaries, but still have the arrogance to go ahead and advertise vacancies externally.
“Once again Prasa is ignoring the principals of the Labour Relations Act that places an obligation on the state -owned enterprise to take preventative steps to minimize any possible job losses.
“This is just another example where Prasa’s arrogant management believes they are above the law, just as they have been ignoring the implementation of the 19 disputes, which form part of a collective agreement Prasa signed with Labour in supposedly “good faith” last year. The management of Prasa cannot be trusted or respected,” says Steve Harris, General Secretary of UNTU.
UNTU demands that Prasa place a moratorium on the filling of any vacancies to minimise potential job losses. According to the Act, the employer must assist affected employees with training to enable them to apply for vacancies instead of losing their jobs.
This comes a day after Transnet was forced by UNTU to impose a moratorium on the filling of any vacancies. The Union caught Transnet advertising externally for non-critical posts while offering Voluntary Severance Package (VSP) to employees. Transnet wants to save R4 billion on its wage bill within the next three years.
Yesterday UNTU once again bent over backward to allow Lindikhaya Zide, the Acting Group Chief Executive Officer of Prasa, the opportunity to try and avoid a national strike of his employees, by intervening in the deadlock in wage negotiations.
The Commission for Conciliation, Mediation and Arbitration (CCMA) issued Labour with a certificate of non-resolution last week, after Prasa management showed up without a mandate to move from a 6% wage offer. Labour is demanding a 10% wage increase.
UNTU is currently busy obtaining a strike ballot from our Prasa members in terms of the Union’s constitution, before the Union will give 48-hour notice of our intention to embark on a protected strike.
Zide explained yesterday that he can increase Prasa’s wage offer with R51 million to 7%, but warned that the unavoidable rationalization of Prasa’s workforce will follow.
Prasa has a budget deficit of R1, 8 billion, with its current wage bill taking up 64% of its expenditure. By offering Labour a 6% wage increase Prasa’s wage bill will increase with R306 million.
“UNTU’s message to Prasa is the same as the Union’s message to Transnet or any other employer. As a responsible Trade Union, the majority Union in Prasa, we will do everything within our means to prevent job losses.
“It makes it very difficult to accept that UNTU members must bear the brunt, when Prasa management admitted to Parliament that they cannot account for R14 billion in wasteful expenditure. This is thanks to dodgy tenders, the former acting chief executive officer of Prasa, Collins Letsoalo, who admitted that he gave himself a 350% salary hike from R1, 7 million to R5, 9 million and the Chairman of the Prasa Board, Popo Molefe, who had to repay R680 000 for extra board meetings that had not been approved by the Department of Transport. No wonder Prasa is suffering from a deficit,” says Harris.
For more information contact Steve Harris on 082 566 5516.
Issued on behalf of UNTU by Sonja Carstens, Media and Liaison Officer. For UNTU Press Statements phone Sonja at 082 463 6806 or e-mail sonja@untu.co.za.
