South African Labor Unions Seek Sweeping Reforms at Transnet
South African Labor Unions Seek Sweeping Reforms at Transnet
South Africa’s biggest labor group called for sweeping reforms at Transnet SOC Ltd., the state port and freight rail operator, including cuts to its management structure and worker representation on its board.
The Congress of South African Trade Unions, which backs the ruling African National Congress, said the company has endured years of mismanagement and neglect, leaving it unable to fulfill its key logistical role. Fixing it will require state support and massive investment, the federation said in a submission to lawmakers.
Cosatu’s call for action at Transnet follows its proposals to resolve a debt crisis at state power utility Eskom Holdings SOC Ltd. and reflects its mounting concern about the threat those companies pose to South African economy and the likelihood they’ll have to cut jobs. While its concerns over mismanagement at Transnet have been echoed by witnesses appearing before a judicial panel that’s probing government corruption, the company is profitable and, unlike Eskom, hasn’t tapped the state for bailouts.
Cosatu called for all Transnet contracts to be audited, and for those that were overpriced or illegally concluded to be canceled. It also wants lifestyle audits for managers, and for the company to stop hiring contract workers.
To contact the reporter on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.net
To contact the editors responsible for this story: Paul Richardson at pmrichardson@bloomberg.net, Karl Maier
©2020 Bloomberg L.P.