Interim

MEMORANDUM OF UNDERSTANDING

ENTERED INTO
BY AND BETWEEN
THE MINISTER OF TRANSPORT
IN COMMITTEE WITH THE
MINISTERIAL CONFERENCE OF MINISTERS OF TRANSPORT (MINCOM)


AND


THE SOUTH AFRICAN TAXI COUNCIL

MAY 1999

PREFACE

WHEREAS the formalisation and regulation of the taxi industry was recommended by the NTTT and accepted by government;

RECOGNISING the significant strides in bringing the government and the industry closer towards a shared vision as enunciated through the NTTT process;

TAKING into cognisance the ongoing taxi industry initiatives towards peace and representivity in the industry;

REALISING the spirit of mutual co-operation and shared vision towards a peaceful, organised, regulated, formalised and profitable taxi industry;

IN RECOGNITION of a need to transform the taxi industry into a viable business entity and the commitment by the industry towards the establishment of the co-operatives, and other forms of business enterprises such as development companies and joint ventures towards black economic empowerment;

ACKNOWLEDGING the past imbalances in funding public transport modes, and recognising the taxi industry as the largest carrier of commuters by far;

PLEDGING government commitment to assist the industry in accelerating the pace of transformation through a wide range of incentives and other forms of assistance where possible;

IN RECOGNISING the taxi industry subject to key deliverables which must be realised within eighteen (18) months from the date this memorandum is entered into;

NOW THEREFORE the government, as represented by the Minister and the taxi industry, as represented by the South African Taxi Council have reached the following understanding:-

Table of Contents

  1. DEFINITIONS
  2. DECLARATION OF INTENT

    2.1 PEACE

    2.2 UNITY

    2.3 DEMOCRACY

    2.4 SAFETY

  3. GOVERNMENT COMMITMENT

    3.1 RECOGNITION

    3.2 RECAPITALISATION

    3.3 DELEGATED POWERS

    3.4 CO-OPERATION

  4. ASSISTANCE

    4.1 GOVERNMENT

    4.2 TAXI INDUSTRY

  5. DISSEMINATION OF INFORMATION
  6. LIAISON AND COMMUNICATION BETWEEN THE PARTIES
  7. DISPUTE RESOLUTION
  8. FORCE MAJEURE
  9. FINAL MEMORANDUM OF UNDERSTANDING
  10. WHOLE AGREEMENT
  11. EFFECTIVE DATE

1. DEFINITIONS

In this Memorandum, unless the context indicates otherwise, any expression used in this memorandum shall have the meaning assigned to it. Any reference to the Memorandum shall be construed as reference to the annexed Addendum, unless clearly otherwise stated.

"Minister" means the national Minister of Transport as representing the national sphere of government

"Department" means the national Department of Transport

"Council" means the South African Taxi Council hereinafter referred to as SATACO

"Industry" means the Taxi industry

"Parties" means the Minister and the Council

"State" means the government, inclusive of all its tiers

"NTTT" means the National Taxi Task Team

"Memorandum" means this Memorandum inclusive of the annexed Addendum

"Federal Structure" means a taxi Association traditionally known as a "mother body" identified in a list agreed upon at the Taxi Plenary held on 18 July 1998 and subsequently ratified by the SATACO Management Council on 23 September 1998 in Cape Town.

"Addendum" means the Addendum annexed to this Memorandum entered into by and between the Director-General: Transport and the SATACO Management Council as represented by its Chairperson.

2. DECLARATION OF INTENT

In the taxi industry's endeavours to overcome and bury the injustices that have torn the industry apart, resulting in the loss of lives and valuable business opportunities;

In forging unity across the divide, the taxi industry pledges its support to the government's comprehensive partnership strategy in general, as contained in the NTTT Final Recommendations, and in particular to formalise the industry as enshrined in the NTTT Final Recommendations. Which in turn, has the capacity to create a conducive environment for black economic empowerment within the broader context of social transformation of our country.

The taxi industry hereby pledges an unwavering commitment to the fundamental principles of unity, peace, safety and democratic practice.

In upholding these principles, without derogating from the generality of this memorandum, the Parties further commit themselves to pursue the following:-

2.1 PEACE

2.1.1 Provide the public with safe, affordable transport free from violence;

2.1.2 Identify, expose and isolate violent elements within the industry who threaten or deliberately undermine the commitment to peace;

2.1.3 Initiate pilot projects as part of a broader reparation programme;

2.1.4 Promote and maintain among operators the highest standards of efficiency and probity;

2.1.5 Initiate, promote and maintain peace programmes and solicit support from various departments of State and tiers of government.

2.2 UNITY

2.2.1 Empower the membership to initiate, create, integrate, and plough back the benefits to their communities;

2.2.2 Spearhead and complete the democratisation programme within a period of 18 months;

2.2.3 With the co-operation of the existing federal structures, create and enhance an atmosphere conducive to co-operation and unity at local, regional, provincial and national level.

2.3 DEMOCRACY

2.3.1 Undertake to educate and apprise individual operators on democratic practice and its significance in the industry;

2.3.2 Embark on a public awareness programme geared towards interpreting and promoting the standard constitution and democratic practice at all levels of the industry;

2.3.3 To encourage individual operators to uphold and defend the constitutions of their primary associations, as modelled from the Standard Constitution, at all times;

2.3.4 Ensure that the principle of transparency is upheld at all times;

2.3.5 Ensure adherence to the Code of Conduct and Disciplinary Procedure by the industry.

2.4 SAFETY

2.4.1 Work towards the realisation of an efficient taxi service;

2.4.2 Co-ordinate and manage the transformation of the taxi industry in partnership and liaison with the relevant authorities at all levels of government;

2.4.3 Promote ongoing planning and implementation of training programmes;

2.4.4 Conduct business with due regard to the safety of the commuters and the public at large;

2.4.5 Encourage members to operate vehicles for public conveyance that are safe and fit to be so operated at all times;

2.4.6 Treat commuters with dignity, respect and courtesy and take great care to ensure their safety and comfort at all times.

3. GOVERNMENT COMMITMENT

In recognising the significant role played by the taxi industry in the economic life of the country, and as a major carrier of passengers nationally, the government embarked upon a consultative process that culminated in the establishment of the National Taxi Task Team.

The government's endeavours to lift the taxi industry out of the quagmire of the past to enable it to take its rightful place within the mainstream public transport system have since been realised through a meaningful partnership that is embodied by this Memorandum.

The government's policy objectives reaffirm its commitment to finding lasting solutions to the problems besetting the taxi industry and ensuring that it becomes an integral part of the formal public transport sector. In upholding its commitment to a partnership that will pave the way for the transformation of the industry into a viable business entity, the government reciprocally commits itself to the following:-

3.1 RECOGNITION

The Minister undertakes to recognise the taxi industry as represented by the Council based on the following conditions:-

  1. The Council unequivocally commits itself to initiate and manage a formalisation and democratisation process at all levels of the taxi industry, culminating in the election of a nationally representative Council within a period of 18 months;
  2. The Council undertakes to systematically implement a programme of acceptable labour practices in line with the relevant labour laws in force from time to time.
  3. The Council upholds and promotes violence free operations in the industry and takes appropriate measures within its delegated powers, to deal with those members who deliberately undermine the peace initiatives and promote violence;
  4. The Council actively participates in the formalisation and regulation of the taxi industry by putting in place appropriate measures to ensure that its members have legal operations and are registered with the Provincial Registrars;
  5. The Council develops and adopts a constitution that entrenches democratic practice and discipline;
  6. The Council's fundamental operating principle is based on inclusivity, transparency and democratic practice.
  7. In its endeavours to uplift the industry, clear parameter will be jointly established to assist the industry on the ground to benefit from any business venture envisaged by the Council, which incorporates a very definite and structured role for Provincial Taxi Co-operatives within such business arrangement.
  8. Provincial representation to the Management Council has been ratified by the relevant MEC in consultation with the legitimate industry representative structure in the Province in question.

The Minister further undertakes to:-

PEACE

  1. Create an environment that will enable the industry to realise its commitment towards peace by forging effective partnerships with relevant Departments of state:
  2. Provide relevant training, in partnership with the industry, to enable them to operate taxis in a safe and responsible manner.

UNITY

Provide support to the formalisation process by putting in place an adequate institutional framework that will enhance and further support the unity initiatives in the industry.

DEMOCRACY

Establish institutional framework as recommended by the NTTT and accepted by government to provide support to the industry in instilling democratic practice.

SAFETY

  1. Legalise illegal operations within the parameters of the NTTT recommendations accepted by government with a view to promoting safer operations;
  2. Implement effective enforcement programmes to protect legal operations and commuters, and ensure vehicles operated for public conveyance are safe to be so operated.

3.2 RECAPITALISATION

The reality of the deterioration of the taxi fleet is snowballing into a possible recapitalisation crisis in the foreseeable future has to be dealt with at the highest level.

On the basis of the aforegoing, the government recognises this crisis in terms of vehicle age and condition. In addressing this, the Minister is committed to:

In recognising the urgency to renew the existing taxi fleet, the Minister undertakes to:

3.3 DELEGATED POWERS

The Minister commits himself, through dialogue with the Council, to empower the Council to enable it to realise its stated objectives in the interim, with a view to creating a legal framework wherein SATACO will have statutory powers.

In addition to which, the development of a final constitution should be completed within 12 months from signing of the Memorandum of Understanding, giving six months the end point of this Memorandum to implement such constitution with certain administrative powers to enable SATACO to realise its stated objectives.

3.4 CO-OPERATION

In accepting the final recommendations of the National Taxi Task Team, the government committed itself to a partnership that will see the taxi industry emerging as a formal sector in the public transport system. In line with such commitment, the Minister undertakes to:-

  1. Ensure the Council receives appropriate co-operation from the Provinces, and local authorities in the execution of its mandate, subject to the Council similarly co-operating with the authorities in question;
  2. Create a conducive environment in which the industry can actively participate in the formulation of policies and legislation that directly impact on the industry.

4. ASSISTANCE

4.1 GOVERNMENT

The Minister further undertakes to provide assistance to the Council in the following areas:-

  1. Driving forward the formalisation of the taxi industry in line with the NTTT Final Recommendations accepted by government, by encouraging individual operators to register with the Provincial Registrars, abide by the Code of Conduct and Disciplinary Procedure as well as operate vehicles with relevant authorisations;
  2. Creating a conducive environment for day-to-day operations of the Council in the short term by providing the necessary financial and other resources;
  3. Public awareness campaigns aimed at popularising the Council, its mission, the formalisation and regulation of the taxi industry.

4.2 TAXI INDUSTRY

The Council reciprocally undertakes to:-

  1. Conduct its affairs in an open and transparent manner;
  2. Manage its funds, whencesoever derived, in compliance with the Generally Accepted Accounting Practices (GAAP) and to avoid the risk of fraud and fraudulent financial reports by putting in place adequate control measures for all financial transactions;
  3. Translate the Council's strategic agenda, as enunciated in the founding document, into a Business Plan that will form the basis of government assistance during the interim phase;
  4. Abide by its interim constitution and develop a final constitution within a period of 12 months.

5. DISSEMINATION OF INFORMATION

Apart from the information referred to elsewhere in this Memorandum, the Council undertakes to provide the Minister with such information as may be required by him/her in connection with the operations of the Council from time to time.

The Minister undertakes, upon a request from the Council, to furnish the Council with up-to-date information relating to the formalisation and regulation of the taxi industry, which he/she may have and the Council may require, provided that such information does not violate any particular individual's rights as enshrined in the Constitution of the Republic of South Africa Act, 1996 (Act 108 of 1996).

6. LIAISON AND COMMUNICATION BETWEEN THE PARTIES

6.1 The Parties agree to meet at regular intervals with a view of facilitating and reaching agreement on the implementation of the provisions of this Memorandum in practice, agreeing on administrative matters in this regard and resolving issues relating to such implementation.

6.2 Any liaison and communication between the Parties in connection with administrative matters dealt with in this Memorandum, will take place between the Director-General, and/or his/her designate, and the Chief Executive Officer of the Council, and/or a person nominated by the SATACO Management Council for that purpose.

7. DISPUTE RESOLUTION

Unless otherwise provided for in this Memorandum, any dispute between the Parties with regard to a matter arising from this Memorandum or its interpretation thereof, or the respective rights and obligations thereunder, will be dealt with in the following manner and in the following order, should the dispute not be resolved:-

  1. Settlement by negotiation between the Parties, which shall include mediation facilitated by a mediator agreed to by the Parties, or
  2. If still unresolved, the Parties may seek an order of a court of law to settle the dispute, whose decision shall be final and binding.

8. FORCE MAJEURE

In the case where either Party is incapable of performing a substantial obligation or duty under this Memorandum because of force majeure, as defined below, the Parties, jointly and severally, must take or cause to be taken all such immediate measures as may be permitted or dictated by the circumstances to perform the obligations, and where applicable, to reduce loss or damages to the other Party, whereafter there must be consultation between the Parties with a view to determining further action by way of consensus.

For the purposes of this Memorandum, force majeure means:-

  1. any of the following occurrences arising from war, invasion, foreign hostile act, civil war, rebellion, revolution, insurrection, public or civil commotion, riot or violence, theft, acts of sabotage, or declaration of a state of emergency or unrest areas;
  2. strikes or other similar stoppages of work by employees of any one Party or its agents, which are not the result of the unreasonable conduct of that Party or its agents (as the case may be); or
  3. the occurrence of any other event beyond the control of a Party, where the Parties agree that such event constitutes force majeure.

9. FINAL MEMORANDUM OF UNDERSTANDING

The Parties agree that this Interim Memorandum of Understanding, which will govern the relationship between the Parties, will be valid for a period of eighteen (18) months from the date it came into effect.

The Parties shall, within this period, prepare a draft of the final Memorandum of Understanding. The final Memorandum of Understanding will come into effect on the date specified in the Memorandum of Understanding after signature by both Parties.

The Parties may, in order to assist them in the preparation of a draft of the final Memorandum of Understanding, appoint a specialist or a team of experts to:-

  1. Conduct a strategic and operational assessment; and
  2. advise the Parties of their findings.

10. WHOLE AGREEMENT

Subject to clause 8, the Parties agree that no variation of, addition to, consensual cancellation of this Memorandum in its entirety or of any term or condition thereof shall be of any force and effect unless reduced to writing and signed by the Parties or their authorised representatives.

11. EFFECTIVE DATE

This Interim Memorandum of Understanding comes into operation and shall be effective from the date of signature by the last Party to sign and shall terminate within eighteen (18) months from such date.

THUS DONE AND SIGNED IN JOHANNESBURG ON THIS 27th DAY OF MAY 1999

MAC MAHARAJ
MINISTER OF TRANSPORT

in committee with the Ministerial Conference of Ministers of Transport (MINCOM)

PA MOTSOALEDI
MEC - TRANSPORT: NORTHERN PROVINCE

JM MTHEMBU
MEC - PUBLIC WORKS & TRANSPORT: MPUMALANGA

S MALEBO
MEC - PUBLIC WORKS & TRANSPORT: FREE STATE

FP VILAKAZI
MEC - TRANSPORT: NORTH-WEST

J KGOALI
MEC - PUBLIC WORKS & TRANSPORT: GAUTENG

SJ NDEBELE
MEC - TRANSPORT: KWAZULU-NATAL

T MHLAHLO
MEC - PUBLIC WORKS & TRANSPORT: EASTERN CAPE

JJ HENNING
MEC - SPORTS, ARTS, CULTURE & TRANSPORT: NORTHERN CAPE

P MEYER
MEC - TRANSPORT & WORKS: WESTERN CAPE

THUS DONE AND SIGNED ON BEHALF OF SATACO IN JOHANNESBURG ON THIS 27TH DAY OF MAY 1999

JS MABASO
CHAIRPERSON : SATACO

MP FILTANE
NATIONAL EXECUTIVE SECRETARY