Transnet is R137bn in debt. Where will it get the money to pay your three-times-inflation wage demand?
It’s necessary to contextualise why we are demanding what we’re demanding. Our members have received below CPI-related increases for at least the last four years.
The reality remains that Transnet is drowning in debt and getting nothing from the government. So where is it going to get the money?
Let’s look at the 2022 wage negotiation cycle. Transnet’s financial situation was very similar to what it is now.
And now you’re demanding increases of more than three times the inflation rate. Where is Transnet going to get the money?
Prasa has got a financial assistance package from the government of R19.2bn. The government as the shareholder cannot give Prasa a R19.2bn bailout and give Transnet nothing. That is not fair.
But it’s the reality. The finance minister says no bailout; don’t you believe him?
Yes, but why? Because the government wants Transnet to fail so that they can implement private sector participation. If you look at the underinvestment in the infrastructure, we’re of the opinion that it has been deliberate. To put Transnet in the situation where it is currently.
Do you agree that it’s looking over a cliff?
Let's be honest, all the SOEs are on a cliff. Prasa’s on a cliff yet the government supports them, but they don’t want to support Transnet.
So what are you going to do if Transnet refuses your demands?
The process is not over, we remain open to negotiation. During the cooling-off period all the parties review what their demands are and what compromises can be made.
Are you prepared to make compromises?
On March 26 we are reconvening for further negotiations and we will see what Transnet has got in regards to their revised proposal, and determine the way forward.
Are you going to use the cooling-off period to take its revised proposal to your members?
No.
Isn’t that illegal?
No. This is not their final offer, merely a revised offer. Their final offer will be taken to the members for their mandate.
Is it true you’re using this cooling-off period to mobilise?
I don’t know where you got that but it’s not an accurate reflection of what we’re busy with.
If your demands are not met, will you strike as you did in 2022?
If our members decide Transnet’s final offer is not acceptable we will exercise our rights.
You’re also demanding a no-retrenchment clause?
Yes. Transnet vehemently opposes that, which reaffirms our fears that with private sector participation there will be job losses.
Is “no retrenchment” sustainable for a company drowning in debt?
No company can remain sustainable if they’re drowning in debt. But that debt arose because of underinvestment in infrastructure by the government, which made Transnet inefficient and unproductive.
Because the government’s bankrupt?
We know that.
So where will infrastructure investment come from without private sector participation?
That is a conundrum that government has to resolve.
Isn’t that why they're bringing in the private sector?
We don’t accept the privatisation of SOEs because it results in job losses.
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