The Sowetan of 21 May 2010 carries an article entitled, "Workers to lose
10 days pay" referring to the Transnet striking workers. This is because
of the no work no pay rule to be implemented when the workers of SATAWU
go back to work after the wage dispute is settled. The employee
mentioned in this article has been with Transnet for the past 29 years
as a driver, but his take home pay is a meagre R4800 per month. He
stands to lose 10 days of that amount due to the rule of no work no pay.
This is a huge sacrifice from a man like this one, who has a family to
feed and children to take to school. One of his kids passed std in 2009
and could not proceed to tertiary level because the father could not
afford to pay fees.

 

Whilst these workers are set to lose pay over the strike, some
bourgeoisie economists are concerned with billions of rands to be lost
by the economy. The question is who cares, because none of the workers
have any share in those billions for that matter. They are going to lose
the peanuts they earn called wages as they sacrificed to get a mere
15%(which now stands at 11% if the agreement is signed), for their micro
economies at home, they care nothing about other peoples' economies,
such as those at the helm of these parastatals like Transnet who earn a
thousand times more that these workers.

 

If you compare the take home pay of this worker mentioned in that
Sowetan of R4800,with that of the CEO or Acting CEO( whatever the case
currently is) ,of Transnet you will be shocked. Below is just a tip of
the iceberg as to only this entity, not to mention SAA,SABC
etc'executive pay(All-inclusive packages);

 

POSITION

2007

2008

2009

CEO

R8 MILLION

R11 MILLION

R5,3 MILLION

CFO

R5,6 MILLION

R7,8 MILLION

R4 MILLON

COO

R6 MILLION

R8,2 MILLION

R4,3 MILLION

OTHER MANAGEMENT-AVERAGE

R4,2 MILLION

R5,7 MILLION

R4,2 MILLION

 

During the year 2009 the executives forfeited their performance bonuses
because of the recession hence there is a decline that year. Transnet is
a schedule 2 public entity in terms of the Public Finance Management
Act(PFMA).Entities are categorised in that schedule as government owned
business entities. Though the entity is operating in the open market,
which is a competitive environment, it is not privately owned. The
packages listed in the table above give a different picture as to that
ownership aspect of these entities. One would be compelled to ask the
question, who are the shareholders who get so impressed by the
performance of these guys as to give them performance bonuses to the
tune of R4 to R5 million rands.These shareholders definitely were also
all smiles to their respective banks to cash in on their dividends
during these periods.

 

The deduction one can make is that these are privately owned government
entities. Fact is government, through the DPSA,does not have a say in
the determination of the salary packages of executives of
parastatals.The packages are constituted by the BOARDS(which is a
structure that always appears faceless.).The Board(seemingly with
unlimited powers) then presents the packages with the budget of the
entity to the Minister responsible for that entity. The Minister
approves the budget which will in all probability  imply approval of the
packages.

 

This is a typical example of the corporitisation of state-owned entities
which is aimed at empowering certain individuals to become rich whilst
the poor remain poorer. There is a noticeable lack of a developmental
agenda in most of these
parastatals,ESKOM,SAA,TRANSNET,DENEL,SABC,(including those that are not
business related, i.e. agencies).Executives appointed in these
institutions develop self-enriching agendas after being appointed whilst
they make false promises of "turning the entity around" before they are
appointed. The case of Jacob Maroga claiming an exit package of some
millions, I forgot how much, and Dali Mpofu also claiming some R12
million from the financially troubled SABC.What did these guys achieve
in these institutions except to create popularity for themselves. It
then becomes very opportunistic and hypocritical for some in the broader
democratic movement, to call for the appointment of preferred candidates
as executive in some of the entities.

 

Perhaps instead of identifying candidates, which is not our call at
all(we are tjatjarag!), we should contribute to giving a clear mandate
to the service delivery imperatives of the entity, and then ensure that
whoever is appointed, by whoever, will follow that mandate.

 

One thing that is noticeable, which is crucial for the developmental
state the ANC government and the alliance are advocating, is lack of
transformation within these entities. For instance in the case of ESKOM,
you will find that most qualified artisans and some other techninicians
are white. These are skills acquired through the affirmative programme
of the National Party in the 1960, to strengthen the white man's
supremacy over a black man. Logically these individuals will be wary of
transferring these skills to other races and this is also the case in
the departments we are working for, where you find those old white
public servants who think that sharing what they know is critical for
retention of their jobs.

 

We need to go back to basics on these issues looking at our
constitituion,the RDP etc. if we are to avoid sliding back to 1996 class
project. The executives at the helm of these entities need to be
workshopped on transformation issues and be given clear mandates
emanating from the strategic perspective of driving the developmental
agenda of the state(including the 5 key priorities of government). They
are as much part of government as other government departments. They are
in actual fact an extension of the services government renders to
society of all classes and races. The tendency of appointing friends,
relatives and even so called comrades in these entities is as rife as in
government departments. I mention so called comrades because other
officials do this in the name of transformation which should not be the
case. 

 

The RDP is the best document ever development by our democratic movement
and is a working document to achieve these goals.

 

I support the call by the SACP made at the last Special National
Congress to open up a discussion around the issues relating to
state-owned entities in their respective categories,i.e. regulators,
public utilities,DFIs,agencies,government enterprises etc.To consider
whether it is of necessity and also beneficial to the state to keep some
of them. Are they all sustainable financially and should the service be
provided by a separate entity of revert back to the parent department.

 

A summit or workshop is necessary to deal with these challenges in our
state entities. These are not for profit business entities, but must act
in a manner to promote the developmental agenda of South Africa. There
is a rise in Youth unemplyoment.The YCL has recently held a National
Jobs for Youth Summit on this. 

 

A complete overhaul of some of these entities to unlock resources for
job creation is of necessity.

 

SOCIALISM IS THE FUTURE!BUILD IT NOW!


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