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The Federation of Unions of South Africa (FEDUSA) has a lodged a Section 77 Protest Action Notice under the Labour Relations Act with the National Economic Development and Labour Council (NEDLAC) to protest against the government’s failure to appoint competent, accountable, responsive and responsible management at most of State Owned Enterprises (SOEs) such as the South African Airways (SAA), power utility Eskom, communication giant Telkom, military electronics company Denel and the South African Broadcasting Corporation (SABC).

These SOEs employ members of major FEDUSA affiliates such as Airlines Pilots Association – South Africa (ALPSA –SA) and UASA – The Union, among others. FEDUSA’s protest action, which will employ a range of strategies such as stayaways, go-slows, work to rule, rolling mass action, intermittent work stoppages, complete cessation of work, organised protest action refusal to perform overtime and/or Sunday work and refusal to work on public holidays, will be specifically targeted at those individuals who serve on the executive management of these parastatals, on their Boards of Directors and those that serve on Board Sub-Committees such as Finance, Audit and Procurement Committees.

NEDLAC has formally acknowledged receipt of FEDUSA’s Section 77 Notice and will revert to the union federation early this week in terms of clarifying its protocols on the way forward. The Notice has been copied to the offices of President Jacob Zuma, Deputy President Cyril Ramaphosa, Finance Minister Pravin Gordhan, Public Enterprises Minister Lynne Brown, Transport Minister Dipuo Peters and the Chief Executive Officers of SAA, SA Express, Denel, Eskom and Telkom.

FEDUSA General Secretary Dennis George says the government’s failure to appoint suitably qualified, responsible and responsive management at these vital parastatals has seen them progressively fall into a state of dysfunction, maladministration and becoming a huge financial drain on the fiscus in the form of continuous multi-billion rand bailouts and government guarantees that help them secure overdraft facilities at commercial banks.

“This has a serious impact on the broader civil society and all the employees and their families. It negatively affects the terms and conditions of employment, safety in the workplace, and the job security of our members,” says George.

Key features of the Section 77 Notice include FEDUSA’s proposals to appoint independent forensic auditors and that its affiliates, NEDLAC and all other recognised unions at these parastatals be allowed full and unhindered access to their internal and external audit reports of the past three financial years.

“Within three months of the start date of the protest action, there should be an appointment of independent forensic auditors to audit all Board and Procurement activities of the SOE for the past five years and details shared with social partners involved in the SOE,” said George.

“Where such audit reports are qualified or hold specific individuals accountable for non-compliance with procedures and protocols, such individuals should be subjected to internal disciplinary processes and pursued within the criminal justice system. We want to see the appointment of union representative as non-Executive Board members as prescribed by legislation on statutory boards, at all SOEs where the unions lodging the protest action are recognised”.

Last but not least, we want to see the establishment of an independent whistle blowers ombudsman office at all SOEs who will be appointed by the social partners at NEDLAC, concluded George.

Issued by FEDUSA