STATEMENT BY JEFF RADEBE, MP MINISTER FOR PUBLIC ENTERPRISES

Issued by: Ministry for Public Enterprises

I have noted with concern the continued confusion over government's position with respect to the questions of the restructuring of Spoornet and reports about pending retrenchments of between 18 000 and 27 000 workers over the next three years.

I must make myself absolutely clear that, regardless of what trade union representatives may have been led to believe by reports or purported statements from management,

The government has not yet been formally briefed by Transnet on any proposals or options that they have considered concerning the restructuring of Spoornet.

The government has, therefore, neither considered nor adopted any position concerning future options for Spoornet at this stage.

In particular, government has not adopted any retrenchment proposals for workers in Spoornet as I made clear in my statement of Monday 12 July 1999.

Only after government has had the opportunity to assess all options, along with the inputs of both management and labour on the way forward shall government be in a position to adopt any proposals.

I must reiterate my earlier view that government views the restructuring of all state assets and state-owned enterprises in a holistic manner that takes into consideration the effect on economic development generally, including sensitive consideration of the effects any restructuring will have on employment.

I have personally spoken to Cde Zwelinzima Vavi, the Acting General Secretary of COSATU, and repeated to him the government's position. I have also invited representatives of AUSA, SAAPA, Salstaff, TWU, SAAFEA, SATAWU and SAFSA to a meeting on Tuesday, 20 July 1999, to discuss labour's general concerns with and comments on the restructuring process.

In the light of these developments I trust that the reasons for the adoption of mass action by unions have been addressed and that the situation can return to normal.

JEFF RADEBE

Minister

14 July 1999

Contact person: Zaid Nordien 0824536224

phone: 012-342-7111

fax: 012-342-7226