SA in for serious trouble

[Steve Appleton]

Indeed, Chris.
Amost the first thing Cameron did in the UK is to cut the cabinet members' salaries. Probably makes as good as no real difference to the UK fiscus, but it sets a serious example for everyone else to follow. It says "we are serious about cutting costs and saving money". Would that happen here?

[Kevin Wilson-Smith]

Luca, while your arguement makes sense, the salaries actually are an issue.

Remember also that with top jobs comes travel + accomadation + S&T + loans + bomuses etc etc etc.

Lets look at some actual salaries from 2008 (Sunday Times http://www.timeslive.co.za/business/article174258.ece).....

Maria Ramos R11.2-million
Transnet's chief operating officer Louis an Niekerk R8.2-million
Chris Wells, financial director R7.8-million
Siyabonga Gama, head of Transnet Freight Rail R7.5-million
Pradeep Maharaj Transnet Freight Rail R6.37-million
Vuyo Kahla Transnet Freight Rail R6.2-million
Tau Morwe Transnet Freight Rail R6.0-million
Moira Moses Transnet Freight Rail R6.0-million
Richard Vallihu Transnet Freight Rail R6.0-million

Impressed? 65.2 million!

Assume 30 other execs earn in excess of 3 million. That now gives a total of 90 + 62.5 = 155.2 million. Mangers total actually around 800, so to assume only 40 top earners is very conservative!

Ah - its now 2010. Add 32.25% (15% for 2 years compounded) - 205.3 million.

Workers - were 13,000. Todays news say Transnet has 4,000+ vacancies. So we can run on Luca's figure of 10,000. Divide 205.3 million by this and we get R 20,500.00 per annum - not shabby. And remember that is an average - lower paid workers may get more etc depending on adjustments, grades etc.

Interesting as an hypothetical exercise only!

(Thinks - needs to join Transnet ASAP and get one of those exec parastatal slalaries. And if they actualy make a decent profit???????? What then? Bill Gates watch out!)

[Kevin Wilson-Smith]

Chris - just saw your post. I do not think 15% is too much, especially given the historical increases and true inflation.

Economies and rationionalisation and better business practices could fund that.

[Luca Lategan]

PRASA and Transnet is two totally different ballgames. PRASA is broke, Transnet has been cutting costs on an unsustainable manner for years now (not buying new locos, closing of depos, laying off workers, failing to maintain infra etc etc) and it's starting to catch up to them.

There's nothing like a bit of competition to get salaries on par. Sheltam, Rovos, Sappi, PRASA, TFR and Gautrain plus new players will all compete for drivers and other skilled workers.

[Kevin Wilson-Smith]

Whether Transnet have been cutting costs to remain profitable or because they are losing business is debatable. Suspect the latter.....

Talking to some of the drivers the other day they were telling me how business has just dropped - leading to yard closures etc because the latter are just not used. Now this may be because industiruies have closed, or because road traffic is preferable. Maybe a mixture of both.

In terms of importing I have mentioned elsewhere that Transnet currently are no go - delays, but worst of all theft. And this really is true. Importers of products with any value will go to any ends to avoid rail transport. But we would all like to use rail! So revenue is there if the issues can be sorted out.

When it comes to not having money etc. remember the cost of a strike in terms of daily losses. For PRASA this must be huge. Paying decent salaries often reaps rewards and certainly a company not making money is not going to any better by not paying a decent wage. Rather the opposite.

[Jerome West]

Talks once again have stalled not over the 10% offer but over the rotational shift system and new conditions of service

[Derek Walker]

On the issue of salary I see it like this.
15% on a monthly R4000 salary is R600. How much 93 octane petrol is that? about 73 litres.
15% on a salary of R20000 is R3000: about 369 litres.
The difference is, the higher your salary is the higher that 15% actually is.
On lower salaries those increases should be in monetery terms and not percentages. The company I work for gave its employees an average of between 2% and 6%, on some of our staffs salaries that meant a lousy R100 a month extra. Yet the bosses awarded themselves anything up to 25%.
Its all relative to what you actually earn I guess. My sympathies do go with the lowest paid because the salaries for those at the bottom are scandalous, but even more scandalous are the salariess and perks of those at the top.
Out of curiosity, as a first year appy at Transnet I was paid R195pm before tax (1981)
when I qualified 4,5 years later it was at R915pm
when I left it was R1024pm. (1986)

[Chris Janisch]

This strike is turning into a most interesting issue. All sorts of central issues are at stake, including basic human rights. This strike has been long coming, and resolution will take long.

[carldasnevesvieira]

I am following this discussion with interest and agree with a lot of the comments. What we are seeing here is the new way of "working conditions"-------I refer to Greece and even here in the UK with cuts at the bottom and yet good payments for those at the top not realizing that all work are done by the rest and not the one at the top.

In SA you have not seen cuts to pay and yet I have seen this at my work where there is a bad reaction to it. We are not even talking about UK Government cuts in budget and services--even possible increase in VAT.

This transport strike is being watched by others who are seeing how far this goes. There is talk already of Eskom wanting 18% and if no one gets that increase we can then pressume that all lights will be out in SA the same way as with no transport in the case of Transnet or whatever they are called...........gave up keeping with the changes of names,I blame it on old age!

If these two get it then someone else will also will want an increase. It is easy to increase prices and blame it on oil or whatever is in fashion at the time. I fear that somewhere in our future we are going to have some world revolution against this concept of working conditions.....where the ordinary man in the street who keeps the economy going is the one being taken advantage of.

Until then I am finishing my time machine and I will be travelling back in time and ending up on a busy SAR station where I see steam locomotives all over the place hauling trains made up of wooden coaches (we got to have a couple of balcony coaches)and beautiful old style dining cars with smiling care free people and laughing children as they experience this wonderful concept of travel.
Anyone care to join? Meet me at the lounge car I am the one having a Castle Laager...............Cheers!

[Luca Lategan]

Yesterday I couldn't believe my ears, tonight I know I'm right. On two consecutive nights just before ten there has been a freight train through Stellenbosch! I don't mistake the sound of a diesel working hard and the horn...

Could this be a straight working from Caledon? Stellenbosch closed so I haven't been able to enquire what train it was.

[Luca Lategan]

JUST IN ON 567 Cape Talk

John Mathom talked to PRASA CEO Lucky Montana. According to him, PRASA and UTATU came to an agreement, unfortunately SATAWU didn't sign the final offer. He didn't say what the conditions of this offer was. Montana went on to say that the majority of UTATU and non-striking workers will be back at work on Monday.

Asked about the chances of any service tomorrow (Friday 20 May) he replied, "Not at all, we must make sure that the infrastructure and trains are in the right condition and we need tomorrow and weekend to check that... We will work on the basis of monday to make sure we have a proper service on monday... Safety is a major concern... I think it [the rail service on Friday] is something we would all like to see it, but I don't think [it would be possible at all]"

His final words were, "I'm appealling to commuters to continue their alternative arrangements for tomorrow and be back on the train on monday."

[Luca Lategan]

Does any one out there know anything about these 1989 strikes? Was it perhaps against the ending of steam? Cangeover to Transnet from SATS? Even implementation of black workers in previous white posts?

The strike continues - and so does the wanton destruction of railway property...

Last week Wednesday it was the derailment of petrol train 1510 near Shallcross on the Natal Main Line after the track had been tampered with. During the same week there were further derailments - near Witbank and Empangeni - under suspicious circumstances, and on Tuesday this week the privately operated (by Lennings, I think) SPENO rail grinding train derailed at Tinley Manor on the Natal North Coast after rail clips had been removed from about 70m of track on a sharp 40km/h curve. The train was being transferred from Empangeni to Mason's Mill at the time, so was running at normal train speed. The entire train derailed and some of the vehicles turned over - damage is estimated at between R23million and R40million, but the real problem is that this critical piece of track maintenance equipment will be out of service for at least six months, so the effect will be felt countrywide for the next year or more.

Transnet has since issued a directive that due to the prevailing unsafe conditions, no passenger trains will be permitted to run over its network until such time as the strike has been resolved, perhaps vindicating the decision taken by PRASA two weeks ago to suspend all Shosholoza Meyl train services. I believe that a dim view has also been taken officially on the transfer of the Rovos Rail trains from Kimberley to Johannesburg (did they ever reach Pretoria?) earlier this week, even though they were running as empty stock and hauled by private locomotives.

A further attempt at sabotage was thwarted when a security patrol found that track clips had been removed on a critical curve between Isipingo and Umbogintwini on the Natal South Coast yesterday morning. Although Metrorail services had already been suspended, TFR continues to operate timber trains to SAICCOR at Umkomaas on this PRASA route, and these were no doubt the target of this criminal activity. TFR has announced a R100 000 reward for any information leading to the successful prosecution of anyone responsible for these acts - nothing of this scale has been seen since the 1989 railway strikes.

Regards


Ashley

[Chris Janisch]

So the Cooke tour will not be traversing TFR lines this weekend. We sincerely hope permission is given to use the Creighton section next week..

[Dylan Knott]

Luca, any idea in which direction the freight was running? Sometimes they use the Stellenbosch loop instead of Kraaifontein line. Kraaifontein station is manually controlled so was likely switched out.

Freight heard working through Swest early hours of the morning as well. Someone must be operating the points at Van der Stel cos yesterday the station was locked making it impossible for anything to run!

[Luca Lategan]

Finally the end has come, to those of you who don't already know, this is the outcome according to PRASA.

The Passenger Rail Agency of South Africa (PRASA) is pleased to announce that the United Transport and Allied
Trade Union (UTATU), has accepted the revised wage offer made by PRASA, and signed the wage agreement on
Thursday 20th May.


This means the majority of PRASA Employees (UTATU members and Non Unionized Employees) have now
accepted the new wage offer. SATAWU did not sign the Wage Agreement, and has been given time to consult further
with its members over the next few days. PRASA urges SATAWU to sign the wage agreement soon in order to have a
full train service on Monday 24th May.


Employees will return to work on Friday 21st May. The signing of the agreement by UTATU effectively brings this
unfortunate strike which inconvenienced our loyal customers to end.


PRASA wishes to thank its loyal customers for the patience and understanding they showed during the strike,
enduring long queues while waiting for alternative transport, and being late at their places of work. For this
inconvenience PRASA offers a sincere apology.


The key features of the wage agreement are:

• 1. A 10% across the board (ATB) wage increase on pensionable salaries backdated to 1 April 2010, for PRASA junior
  employees employed in its Corporate Office and its Rail Division comprising of Metrorail and Shosholoza Meyl.
  
  2 PRASA will introduce a Rotational Shift System (Three Shift System) in its rail operations environment on the 1st of
  July 2010, in order to ensure increased operating hours and improved services to the commuting public. The
  proposed rotational shift system will cover the following operational grades:
  • -Technical Maintenance Employees in (Rolling Stock, Maintenance, Signal, Per way and Electrical);
    -Train Operations (Metro Train Drivers, Guards, Train Control Officers, Yard Operations);
    -Customer Service;
    -Protection and Related Services.
  3 The parties agree to conclude the Conditions of Service negotiations by the 30th of June 2010 and to implement the
  new conditions on the 1st of August 2010.
  
  4 The parties agree that on implementation of the Conditions of Service, allowances which include the following shall
  cease to exist, namely:
  • -Standby Allowance;
    -Track Tool Technical Allowance;
    -Inconvenience Allowance.
  5. All female employees within PRASA shall from 1st July 2010 be entitled to four (4) months maternity leave at full
  pay.

The agreement is a victory for the commuters in that it will allow PRASA to extend its operations to 24hrs, resulting in
improved service. Through the new Rotational Shift System, critical maintenance work on both rolling stock and
infrastructure will be undertaken outside peak hours, at night and over weekends, thereby limiting incidents of trains
failing in the system.


Issued by PRASA RAIL OPERATIONS