MEMORANDUM OF UNDERSTANDING SIGNED WITH THE MINIBUS TAXI INDUSTRY

27 May 1999

The Minister of Transport Mac Maharaj, in committee with the provincial MECs of Transport, today signed a Memorandum of Understanding with the South African Taxi Associations Council (Sataco).

The signing represents a significant milestone in the formalisation of the taxi industry. It also brings to a close a chapter on the National Taxi Task Team (NTTT) which saw 36 public hearings throughout the country that culminated in the tabling of final recommendations in August 1996.

The NTTT reported that the minibus taxi industry is not recognised by government and also lacks economic empowerment, a formal structure and effective control of its operations. The continuing conflict and constant threat of violence in it attests to the failure to create effective mechanisms and structures to control and regulate itself to resolve conflict and contain violence.

Part of the legacy is an industry with no effective regulatory structure, yet one that now carries the majority of urban passengers with a 65% market share.

The establishment of a national body Sataco signals an important development in the history of the taxi industry, and begins to redress the anomalies of the past. For the first time all the players across association lines have come together to form a national body, Sataco.

This unity has been brought about by a desire in the industry to move away from conflict, and towards formalised operations and the belief in the government's sincerity in its undertaking to recognise the industry and support its endeavours to formalise itself by putting in place adequate regulatory framework and support structures. The decline in incidents of taxi violence over the last three years serves as a clear signal that the industry is ready to embrace peace and unity.

The Memorandum of Understanding embodies a commitment, both by government and the industry, to work together for peace, stability, economic growth and safety in the taxi industry.

This document further creates a platform for effective and healthy interaction between the industry and government at all levels. The recognition granted by government to the industry in terms of the Memorandum is not without conditions. Such conditions include:

A commitment on the part of the industry to initiate a democratisation process that will culminate in the election of a nationally representative Council within 18 months. This includes assisting associations at local level to adopt the prescribed Standard Constitution and Code of Conduct and Provinces to put in place representative Provincial Councils.
A commitment to implement a programme of acceptable labour practices in line with the relevant labour laws.
The Council's fundamental operating principle is based on inclusivity, transparency and democratic practice.
The Council commits itself to uphold and promote violence-free operations and will take appropriate action within its powers to deal with members who deliberately undermine peace and who promote violence

This is an interim memorandum has a life span of 18 months, after which a final Memorandum of Understanding will be entered into.

It is our belief, that the signing of this document will open new doors to the industry and empower it to take charge of its transformation into a viable business entity. This shift from the chaotic operations of the past poses a challenge to the nation, and the private sector in particular, to determine their role in assisting the industry to complete this long awaited formalisation.

Sataco president is Mr Joe Mabaso (083 253 0079) and its Secretary is Mr M P Filtane (082 963 3139). Sataco's national office number is: (012) 362 1096

Issued by Didi Moyle: PA and Media Liaison Officer to the Minister of Transport 27/5/1999

Didi Moyle
PA and Media Liaison Officer to the Minister of Transport
Pretoria: (012) 309 3131 (phone) or (012) 328 3194 (fax)
Cape Town: (021) 457260 (phone) or (021) 461 6845 (fax)
email: moyle@mweb.co.za or moyled@ndot.pwv.gov.za (Pretoria only)
cell: 082 808 5108