Capespan pioneers unique labour scheme

Trusts established to provide
pool of expertise

Terry Hutson

ONE OF the most interesting developments in the field of labour/ employer relationships is unfolding in the ports of Cape Town and Durban, involving the entire labour force of two Capespan export terminals.
Faced with the reality that the days of permanent employment in a highly seasonal business were numbered, labour and the company agreed to reposition themselves, with the labour force forming fully empowered trusts and contracting and performing all warehousing, stevedoring and logistical functions for the company. A specialist company, Stakeholders SA, was called in to help facilitate and guide the trust through the process, as well as to position them for future opportunities.
In the first step in the process, all labour at the terminals in Cape Town and Durban was retrenched on 1 February, with Capespan contracting to outsource labour requirements from the two trusts. These - Signal Hill Trust in Cape Town as well as another as yet unnamed in Durban - have successfully tendered for a three year contract to handle and supply all Capespan's logistical requirements at the respective terminals. This applies to stevedoring, reefer and breakbulk warehousing, tallying, shipping, cargo repair, container packing, crane and forklift driving and general supervisory services as required. The trust is also able to take on some of the IT performance, logistics and financial services.
From a legal point of view each trust is made up of members of the original workforce of the Cape Town and Durban terminals, but in terms of operation Proprietary (Pty) companies have been formed under which they will operate.
Rightsizing of each organisation into tighter units was seen as necessary and was effected by the members themselves. In the case of Durban this meant a reduction from 67 members to a more sustainable 45.
The new organisations are able to explore other port and industrial opportunities and expand their operations.
In Cape Town the month of January was used as a 'dry run' to pilot the new operational procedures. According to Koos Bouwer, terminal manager of Fresh Produce Terminals in Cape Town, (formerly International Harbour Services), he has already seen a number of changes, in particular a new focus on productivity. Communication between groups is more constructive and is handled with a lot of respect towards all individuals involved. Attitudes are very positive now and directed towards achievement, with a focus on productivity.
Bouwer said he had confidence in the venture because of the elements of true empowerment.
Trevor Muller, a Durban trust committee member, told FTW: We are already looking further afield for support from outside companies. What we've got here is true empowerment. We are all equal shareholders in our own company.

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