27 February 2002
In March 2001 representatives of labour in Spoornet met with Minister Radebe and Omar to discuss the future structure and ownership of Spoornet. The two Ministers expressed the view that they were open to further discussions about the divergence of view on the future of Spoornet. The meeting agreed to establish a Task Team to investigate and discuss certain options. It was agreed that the Task Team should comprise representatives of the three trade unions recognised by Spoornet (Salstaff, SATAWU and UTATU), and officials of the NDOT and DPE.
The task team then co-opted members of Spoornet management and formed a Technical Working Group (TWG) that reviewed the restructuring options facing Spoornet. TWG then developed recommendations as to the restructuring of Spoornet.
Government and labour have reached agreement on the recommendations of the Task Team that set out the final model for Spoornet Restructuring.
Principle features of the model are the following:
1) General Freight Business (GFB) and Coal should Link remain part of an integrated (Spoornet – SATAWU) rail freight operation, and the current reporting structure of Orex to Spoornet would be maintained. The parties have agreed that there will be further engagement on the future restructuring of Orex.
2) The parties have agreed that consideration should be given to combining Shosholoza Meyl, Metro Rail & South African Rail Commuter Corporation (SARCC) in one state owned, Subsidized passenger operation.
3) The parties have agreed that Luxrail is a non-strategic operation that is first and foremost a luxury hotel operation, and should therefore be concessioned to a private operator with expertise in the hospitality sector.
4) The parties have agreed that consideration should be given to establishing a two-tier system of management of the low-density lines. The challenges associated with these lines require maximum local consultation of stakeholders, and possibly a decentralised form of management. To this end the parties have agreed to establish a Task Team comprising representatives of labour. Spoornet management and Government to investigate the current status of low-density lines, in order to ascertain the viability of a two tier operational and management structure for high and low density rail lines.
5) The parties support the option for an extended network size of 15 800km that includes a selection of light density lines, with expanded volumes up to 2020. To ensure the viability of this network, the current efficiencies and productivity should be improved to the required levels and be supported by the required levels of investment.
6) In order to deliver improved rail freight services to the country, it has been agreed that a range of turnaround strategies and projects will be implemented by Spoor net Management. Government, being the shareholder, will hold Spoornet accountable for delivering on agreed service improvements.
7) The parties have agreed that a mechanism should be put in place to audit and evaluate the implementation of efficiency measures, within Spoornet, including initiatives to increase volumes.
8) On the basis of the agreed model it is projected that approximately 8000 employer-induced retrenchments will occur in the period ending 2006. This is substantially less than those envisaged in the original plan. The parties agreed to establish a task team comprised of labour Spoornet Management and Government that should identify innovative ways to mitigate job losses at Spoornet by identifying alternative employment and income-generating activities for retrenched workers.
9) The parties have agreed that the National Department of Transport shall develop policies and policy instruments that help support the movement of freight by rail where appropriate.
This statement has been compiled jointly by Government, SALSTAFF, SATAWU and UTATU