The Congress of South African Trade Unions (COSATU) is deeply concerned that South Africa’s second largest provincial economy will grind to a halt if 20 commuter bus companies stop operating next week.
Major commuter bus companies operating in Kwa-Zulu Natal including South Coast Bus Service, Metrow Bus Service and Combined Transport Services, say they will be forced to halt operations from next week if the KZN Department of Transport does not pay subsidies as per signed contracts. In a letter to the South African Road Passenger Bargaining Council (SARPBAC), the bus companies state that they will not be able to ferry thousands of passengers across the province to work, school, university, hospital or any other destination if their subsidies remain unpaid.
The KZN DoT is in breach of contract as it has not paid subsidies since April this year, the passenger bus companies maintain. Subsidies are meant to be paid monthly. The companies say have had to dig deep into their reserves to ensure services to commuters across KZN were not disrupted in the past few months. Given the fuel price increases since the war in the Middle East started, plus the latest diesel price hike, the bus companies say their reserves are now depleted. Worse still financial institutions are unwilling to grant further extensions on their credit lines.
On contacting the National Department of Transport, the passenger bus bargaining council General Secretary, Gary Wilson, was informed that the allocation for subsidies was paid over to the KZN DoT. The question then arises, why have funds not been transferred to the bus companies?
Were bus companies to stop operating next week, commuters would have no transport to get to work or school, the provincial economy would be adversely impacted, and the livelihoods of more than 1 000 workers would be threatened, along with that of their families. Workers’ salaries were also paid from reserves in recent months. If the subsidies are not paid within this week, the consequences will be dire.
COSATU calls on the National Department of Transport as well as the KZN Provincial Government to intervene to ensure subsidies are paid within this week to avoid disruptions that could ultimately cost the economy multiples more, given volatile nature of the province.
The Federation calls on all stakeholders to do all in their power to avoid this impending disaster because it will affect the working class and the poor the worst.
Issued by COSATU
Zanele Sabela (COSATU Spokesperson)
Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za