Union demands urgent talks over rail hikes

Leonard Neill IT IS 'nonsense' for Spoornet to justify its recently announced rates increases with the argument that the general freight business needs to stand alone from the bulk operations, says the South African Transport and Allied Workers' Union (Satawu). "This contravenes the essence of the agreement reached previously with them that the bulk operations would continue to cross-subsidise general freight operations," a spokesman said. The Union has called for an immediate withdrawal of the increases and has threatened strike action if Spoornet does not agree to do so. It has also called for urgent talks with the rail provider, which are expected to take place during the course of next week. "Something has to give, and that has to come from their side," says Satawu general secretary Randall Howard. The rail rates increase announcement contradicts another aspect of the agreement, he says, namely the importance of growing rail freight volumes. "The agreement includes a clause on the importance of policies being developed by the Department of Transport to support rail freight. It was recognised that the transfer of freight from rail to road inevitably puts a huge road maintenance cost burden onto the state, and that this should be avoided. One likely effect of the rates increase will be a shift of large quantities of freight onto road, as a cheaper option for the client but with additional cost to the state. "The agreement was reached on the basis of a full and thorough analysis of revenues and investment needs over the next 20 years. It would seem that Spoornet management has now turned its back on the analysis and the outcome, and is pursuing its own business plan "In the context of the restructuring agreement, there is absolutely no justification for the rates increases and they must be withdrawn with immediate effect. Satawu will not accept the undermining of the agreement by any party and will use every means necessary to defend it."