Cosatu slams Ramaphosa’s ‘unilateral’ outsourcing of public services at Transnet

Picture: Supplied

Picture: Supplied

Published Apr 19, 2023

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Johannesburg - The Congress of South African Trade Unions (Cosatu) has called out the government and the ANC-led administration for their continued outsourcing of public services and unbundling of Transnet.

In a statement released on Tuesday, the union said it is concerned about the intensification of the ‘’unilateral’’ outsourcing of public services to the private sector, including at Transnet.

‘’The federation remains deeply concerned about the ongoing outsourcing at Transnet, in particular. We denounce and reject the ongoing unbundling and privatisation of Transnet. This will destroy jobs and undermine economic growth,’’ Cosatu spokesperson Sizwe Pamla said.

In 2021, Cosatu slammed President Cyril Ramaphosa’s administration‘s decision to dismantle Transnet by breaking down the Transnet National Ports Authority (TNPA) into an independent subsidiary.

At the time, Cosatu said this decision was not in line with the vision of the Alliance or the ANC Manifesto. Cosatu has reiterated its view, saying this act undermines the country’s developmental state agenda.

‘’This outsourcing and contracting out of services is nothing more than the continued retreat and abandonment of ANC resolutions, as we have seen from successive ANC administrations since 1994. The rhetoric about the centrality of job creation and the transformation of the economy has become nothing but an empty slogan," Pamla added.

Cosatu’s outcry comes just days after Minister of State Enterprises Pravin Gordhan announced the appointment of an interim SAA board set to work hand-in-hand with Takatso Consortium, which acquired a controlling stake in the embattled airline.

Many have accused Gordhan of secretly appointing the SAA interim board without proper consultation with the ANC and other stakeholders.

Pamla said the country’s railway system, built over decades, was being stripped and vandalised by criminal syndicates who want to ensure that they continue to operate it through extended contracts.

‘’Transnet is key in transporting mining, manufacturing, and agricultural products to their markets, and millions of jobs depend upon its efficient management, and not its privatisation,’’ he said.

Spokesperson for the President, Vincent Magwenya, told The Star that there were no privatisation efforts being carried out at Transnet.

‘’There is no privatisation process for Transnet, nor has there been any published policy to privatise Transnet,’’ he said.

Attempts to get the ANC to react to Cosatu’s assertions proved unsuccessful at the time of publishing.

The Star