Incentive scheme provided big staff bonus
SPOORNET MADE a handsome R605 million nett profit for the year ending March 2001 which it attributes to improved efficiencies resulting in greater turnover, restructuring, improved safety methods, improved services to customers and a complete transformation in general operations.
Announcing the annual figures at a media gathering in Sandton this week, chief executive Zandile Jakavula stated that profit was not only 595% better than budget but also showed a R521- million improvement on the figures for the previous year of R84 million.
"Three years ago we showed a loss of R146 million. That displays the improvement we have made in general services," he said.
The gross profit for the past year was, in fact, R791 million but Spoornet had introduced an incentive bonus where employees would benefit if targets were met, he said. This had resulted in a total of 36 577 employees enjoying a R186 million benefit in the reward system.
"Our services to customers have not always been good," said Jakavula. "The conditions of our infrastructure in general and the age of locomotives which were continually breaking down have been a handicap in the past. But we have seen to it that this has changed for the good. Locomotives are being upgraded and new ones are being purchased."
Tonnages moved during the past year amounted to 185 million tons as against 179 million tons the previous year and, for the first time, the total turnover of the parastatal passed the R10 billion mark. Also making a major contribution to the improved profitability was the decrease in levels of stock days - when rolling stock was not in use - and the marked improvement in the recovery of debts.
The COALlink operation witnessed the highest tempo on a weekly basis during the fourth week of January this year which equalled an annualised tempo of 75,95 million tons, he said, while during the year itself the one billion ton mark was reached.
Orex, the rail of steel to the harbours, was improved by the integration of rail and port as an iron ore channel, with 23 million tons carried during the year.
Dealing with Spoornet's efforts to fight fraud and theft, Jakavula revealed that a total of 36 employees were accused of fraudulent activities. Nine were dismissed and three resigned. A further 10 cases were finalised with disciplinary warnings while 14 cases are still pending. At the same time three contracts were terminated where criminal activities were involved. Another 244 private people were arrested in 139 cases of theft.
Dealing with staff situations, Jakavula stated that women had taken Ôgreat strides' in moving up the management ladder with 62 now employed in these capacities. White senior management decreased from 28 in 1999 to 20 last year while blacks increased from 19 to 28, of which six were women.
The year ahead, he said, offered new challenges in which Spoornet would deal with HIV/Aids on home-based care, would provide additional education, especially in mathematics and engineering to staff, would address poverty alleviation, and would help sports development and job creation.
