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Cost cutting hangs over Transnet expansion
2009/2/18
Transnet''s multi million dollar expansion programme appears to be in jeopardy, as the company is expected to implement cost cutting measures that include the cancellation of new projects to mitigate tumbling volumes, the Star reported.
Chris de Vos, the general secretary of the United Transport and Allied Trade Union, said that Transnet management had informed the union that the transport parastatal needed to save US$479.6 million between now and next month, the end of its financial year.
"If that is not the case, they would need to talk to us about no wage increase versus retrenchments," said De Vos.
He said that at a meeting two weeks ago, Transnet had said it had come up with cost saving methods that it would implement. These included the cancellation of new projects, the reduction of paid working hours, compulsory unpaid leave, and the reduction of consultants and contract workers.
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2009/2/18