Transnet Freight Rail to cut costs

Overtime and filling of vacancies are the areas where Transnet Freight Rail will cut their costs in the economic downturn that the country is experiencing.
Amongst the measures agreed to by Freight Rail and its two recognized trade unions SATAWU and UTATU is that of limiting overtime to where business requirements justify and a moratorium has been called on the filling of new vacancies and on travel.
Both parties agreed that retrenchments are only to be considered as a last resort. The parties have also agreed that there will be no service disruptions; that they will work to serve South Africa and ensure that the logistics system continues to be enhanced.
Transnet Freight Rail and its recognised trade unions SATAWU and UTATU have jointly agreed on implementing a number of measures to manage costs. This comes as a result of the current economic global downturn, which has seen a number of companies introducing cost saving measures to manage the situation.
“Fruitful discussions on how costs could be appropriately managed to safeguard employment were held and we are very happy that we found each other, said Transnet Rail Freight Human Capital General Manager, Tumelo Mokwena. “All efforts will be made by management and staff to ensure that there are no service disruptions and that employees are not adversely affected by the current economic climate”.
“The gains we have made will be consolidated to ensure that this Company continues on the path it has been journeying and ensure customer needs are met at the highest levels of service possible within the constraints that we find ourselves in”, said Freight Rail’s Chief Executive, Siyabonga Gama.