SATAWU slams former acting Transnet group CEO demands for a R3, 8 million payout

The South African Transport & Allied Workers Union is vehemently opposed to the R3.8 million as an outstanding long-term incentive award now being demanded by the former acting Transnet CEO Chris Wells as reported in today's Business Day (see here). According to Transnet annual report Mr Wells received a long-term incentive payment of R8,9m and a short-term one of R2,8m in addition to his R4,6m salary last year.

SATAWU is posing this question to Transnet: How can a public utility which is mandated to provide an efficient and affordable service to the people of South Africa possibly justify paying out such incentives to the person in charge? Surely every cent that Transnet has should be directed towards job creation, isn't 2011 the year of "the job" as said by President Jacob Zuma?

At a time when workers are fighting to improve their low wages pay, to demand such a hefty payout from a state owned company is a slap in the face. The demands of workers are consistent with the COSATU Central Committee resolutions on living wage campaign which declares that central to the demands should/must be a double digit increase.

This is yet another example of the culture of self-entitlement and greed, which has plagued the business sector and has been invading the public service as well. Transnet is still a public utility, with a mandate to various services all South Africans as efficiently as possible. It is not, and must never become a business to maximise profits and a way of enriching a small elite of executives.

South Africa is one of the most unequal societies in the world and inequality is getting even wider, as CEOs salaries keep shooting up to such high levels. South Africa has to return to the principles of public representatives being in office to serve the people and not to enrich themselves, and that has to include public utilities like Transnet.

Statement issued by Reagoikanya Molopyane, SATAWU national spokesperson, August 2 2011

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