News online
Non-payment of bus subsidies putting jobs in jeopardy in South Africa
23 January 2009
South African bus workers are up in arms over the government’s failure to pay up on subsidies for the sector, putting some tens of thousands of employees’ jobs at risk.
The South African government has reneged on its pledge to provide bus operators across the country with a R4.1 billion (US139 million) in subsidy funding; in November, it stated it could not pay the subsidies for the four months from December last year to March this year. This is set to lead to a shortfall of some R1.2 billion (US$119 million).
The South African Bus Operators’ Association, which represents the bus owners, supported by the ITF-affiliated South African Transport and Allied Workers’ Union (Satawu), has now taken legal action in a bid to force the government to honour the financial agreement. The parties are due to meet in the high court in Johannesburg next Thursday over the issue.
Jane Barrett of Satawu, said: “The non-payment of subsidies to the industry could put 30,000 bus workers’ jobs in jeopardy. Satawu finds it extraordinary that the national treasury is willing to push the bus industry to the point of collapse. Such a collapse would reverse the very positive expansion that the bus industry has seen over the past year, and would fly in the face of the government’s policy to promote and expand mass public passenger transport.”
The union has pledged to call a dispute if the government refuses to honour its commitment; this could lead to national industrial action.
Back to current news online stories
|
view larger image
