Axing 8,000 Transnet Workers Will Be Opposed With Every Mechanism Available – SATAWU

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Axing 8,000 Transnet Workers – The South African Transport and Allied Workers’ Union (SATAWU) has warned the management of Transnet that its plan to dismiss 8,000 workers will be opposed.

SATAWU specified that it’s opposed to the planned forced retrenchments at the South African rail, port and pipeline company.

The Union expressed that it is gravely concerned about reports on Transnet’s intent to retrench an estimated 8,000 workers in the next financial year.

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It circulated that Transnet wants to reduce its R25-billion labour costs by R4-billion. The company decided that it will retrench about 8 000 of its employees in the coming financial year after less than 10% of the targeted staff, opted for the voluntary severance package offered in March 2017.

From what we gathered, only 1,791 staffers applied for the package and 655 applications have been approved.

The claims were found in an internal document. According to Times Live, the document showed that Transnet wants to reduce its current labour costs to reflect a ratio of 31% of total revenue.  And, that a labour cost saving of R4bn will reduce the ratio to the desired percentage.

“It is against this backdrop that Transnet requires a R4bn saving in labour costs through the reduction of 9‚022 employees.



“The cost of voluntary severance packages for 9‚022 employees is estimated at R4bn which will be provided for in the new financial (2017/18) year.

“Other initiatives to reduce the labour costs include forced leave which saved the company R1-billion in the current financial year,” read the document.

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In a statement, SATAWU upheld that axing 8,000 Transnet workers won’t be accepted.

“(We) would like to categorically state that we have not been consulted about plans to forcefully retrench staff and as a result, we are not aware of any such plans.

“However, it is only fair that we warn management that if it is entertaining any such plans, we will use every mechanism available to us to oppose the move.

“It goes without saying that cutting 8 000 jobs in this economic climate is nothing less than unacceptable. SATAWU members at Transnet should rest assured that we will make this issue a priority when we meet with management on Tuesday 12 September,” added the union.