Memorandum of Demands:
To: Minister of Transport - Ms. Dipuo Peters.
From: CTLE / UCW workers.
Date: 16 / 10 / 2014
Subject: Save our jobs and create more employment.
Introduction:
We, workers of CTLE [previously known as Union Carriage and Wagon (UCW)] find it totally strange and unacceptable that Transnet being an entity of a government that purports to champion job creation and industrialisation has for the past three years overlooked and undermined companies such as ours that have vast experience in rolling stock manufacturing.
For us, the last straw is the R50-billion tender that Transnet announced in March 2014 for the manufacture of 1 064 diesel and electric locomotives. This tender was awarded to FOUR foreign-owned companies with BEE partners that have no rail experience or capacity to manufacture rolling stock equipment.
We are fully aware that Transnet does not strictly fall under your department as it is the Department of Public Enterprises (DPE) that exercises the shareholder role on behalf of government. We thought that as a Minister of Transport with a mandate to "move South Africa", you will be interested in our plight and convey our frustrations to Cabinet and the Minister of Public Enterprises.
CTLE profile:
Again, we find it unacceptable and undermining that upon the release of billions of Rands towards refurbishment of rail infrastructure in our country, we are told that we lack skills, capacity and experience. CTLE which was known as Union Carriage and Wagon (UCW) has vast experience in building trains and locomotives in this country; dating back to 1955.
We have been involved in many projects. We built the Gautrain, 15 and 19E s electric locomotives, 14E loco, 10M, 6E loco and Blue Train. We built locos for Taiwan, Malaysia and Botswana. We built mainline trains for Zimbabwe and Angola. We have operational capability to do general overhaul (GO) of passenger coaches and freight wagons.
Furthermore, the company is 100% black owned, with 10 % set aside for worker ownership. We are a transformed company. We feel that there are no justifiable reasons for Transnet to exclude us from being part of the broader rail infrastructure development plan that the South African government is embarking on.
The consequence of government actions:
The continually ignoring of local capability places business and jobs at serious risk in the whole sector. These threats do not only affect our companies, but also impact on suppliers and our families. The lack of contracts from Transnet is tantamount to disinvestment from our areas with disastrous consequences for all us. We are convinced that the talk about localisation within Transnet is nothing else but mere lips service.
CTLE, when operating in its maximum capacity can employ a workforce of up to 3 000 employees. It is the biggest employer in our area. Due to lack of contracts from Transnet the workforce has dwindled down to 700.
As we speak the company is in state which might lead to a total shut down of operations. With the loss of the Transnet contract, we are presently faced with a potential retrenchment of 250 employees. The retrenchment of the workers will severely affect the communities around CTLE.
The shutdown of this plant will be devastating to surrounding communities. It would have huge economic and social implications for nearby communities; which is why the people of Nigel and the surrounding areas of Duduza, Tsakane, Ratanda, Alra Park and KwaThema are here today supporting our struggle. But because workers who work here are drawn and have dependents in different parts of the country such as KZN, Eastern Cape, Mpumalanga and Limpopo; the effect of job losses as a result of the company closing down will be felt by families in different parts of the country.
With rate of unemployment, poverty and inequality already extreme in our country; we find any loss of jobs in this sector unacceptable. We as workers and the community, we refuse to see 250 employees being pushed deliberately into poverty. We say no to retrenchment of the 250 fellow workers. Government must preserve these jobs and create more jobs for the benefit of South Africa's unemployed people.
We say away with tender corruption that goes with kick backs.
We therefore DEMAND that:
1. Government through its entities Transnet and Prasa must give CTLE projects to combat this catastrophic situation faced by the company.
2. With immediate effect stolen rail leading to the CTLE plant must be replaced by Ekurhuleni municipality.
3. Transnet and local government must take full responsibility and step up security measures to protect the railway line to CTLE and to prevent reoccurrence of stealing of rails.
4. Government officials and its entities must stop being greedy and protect the existing South African companies with vast experience in manufacturing rolling stock.
5. Stop prioritising foreign companies at the expense of the South African companies.
6. Any government official or ordinary citizen of this country who benefited wrongly in the process of tender issuing must rot in jail.
All the above listed demands must be met within a month starting from today's date.
Furthermore, within 14 days from today's date a progress report must be delivered to CTLE workers.
7. In moving forward government through IDC must make sure that employee's ownership of this company improves by 5 % each and every five year period.
8. An urgent meeting must be convened with all stakeholders by the 24 October 2014.
Failure to meet our urgent demands that are number 1, 2 and 3 within stipulated time frame, we will have no other alternative other than to mobilise the South African community to be with us when we embark on a sit-in at Transnet premises.
As CTLE workers and members of the National Union of Metalworkers of South Africa (Numsa), we are appealing to the union to take urgent steps that will ensure that the R50-billion Transnet tender is reviewed. We call on the union to demand the review of the tender not only for us as CTLE workers but for all workers in the sector. We as workers of CTLE are prepared to join our class brothers and sisters in companies such as Naledi Rail Engineering, Dorbyl (DCD), Wictra Holding, RRL Grinrod and Electro Motive Diesel (EDM) in a mass national campaign to block any rotten tender deals in the sector.
Government officials and its entities must stop being greedy and protect the existing South African companies with vast experience in manufacturing rolling stock. Stop prioritising foreign companies at the expense of the South African companies. Any government official or ordinary citizen of this country who benefited wrongly in the process of tender issuing must rot in jail.
Received by Department of Transport and Passenger Rail:
Name and surname: .................................
Sign: ........................................... Date: ...
On behalf of CTLE Workers hand over by:
Name and surname: ......
Sign: Date:
Issued by NUMSA, October 16 2014
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