SA Taxi, a division of JSE-listed Transaction Capital, dodged a bullet yesterday after the Kungwini Amalgamated Workers Union (Kawu) held in abeyance until next week Wednesday a disruptive strike that could have hit the taxi commuter transport and security sectors hard as workers pressed demands for acceptable working conditions and union representation.
The strike was averted yesterday midday after workers, who had been picketing at the SA Taxi headquarters in Midrand, presented a memorandum of demands following the failure of engagements between the company and the union from October last year.
This is after negotiations, which had started in October and went through the Commission for Conciliation, Mediation and Arbitration (CCMA), were left unresolved.
Kawu's national co-ordinator, Khumbulani Moyo, spoke to Business Report before the petition was delivered to SA Taxi yesterday.
“The gates are closed here in Midrand and our members are also picketing at De Deur in Vereeniging,” Moyo said.
“We will ensure there is no distribution of vehicles or vehicle parts from these hubs that supply the whole country and southern Africa. As we speak there are no telesales, no refinancing, no processing of insurance transactions.”
Moyo said Kawu was planning to mobilise for solidarity among its 65 000 members within the private security sector, which most are security guards in the hospitality, government and private sector.
“The public transport operators are our stakeholders as well and we had planned to approach them by Monday if management still refuses to engage,” he said.
Kawu presented a memorandum of demands which sought to bridge the 20% industry-level wage shortfall, and also to register the employees with the Motor Industry Bargaining Council to access medical, provident fund, leave and bonus benefits.
The union also demands the signing of a collective agreement and recognition of shop stewards.
SA Taxi management was unavailable for comment yesterday as all communication platforms went unanswered.
SA Taxi, which claims a stake in the 15 million daily commuters in the taxi sector, currently finances about 36 000 taxis and has helped establish 76 000 businesses nationally.
Of the estimated 250 000 taxis on the roads in South Africa, SA Taxi finances more than 36 000.
In its trading statement in September last year, Transaction Capital recorded a decline in core, basic, and headline earnings per share from continuing operations for the full year, primarily due to ongoing macroeconomic challenges faced by South Africa’s minibus taxi industry since the onset of the Covid-19 pandemic in March 2020.
It saw a decline in core earnings per share (EPS), headline earnings per share (HEPS), and basic EPS as the restructuring of SA Taxi, aimed at right-sizing the business and addressing the challenges posed by the industry, continued to impact Transaction Capital’s full-year earnings.
Transaction Capital said the restructuring process and the related non-recurring costs incurred to get the business to a sustainable base impacted full-year core EPS, HEPS and basic EPS.
“The successful implementation of management changes, aggressive cost reduction measures, and a focus on higher quality credit risk have also contributed to improved stability within SA Taxi,” it said.
“Collection strategies have been enhanced through the appointment of Nutun as an outsourced partner, resulting in improved collection efficiency. Engagement with debt funders has been constructive and positive to date.”
Transaction Capital’s other subsidiaries, WeBuyCars and Nutun, were reported to be holding their own despite the tough economic environment.
BUSINESS REPORT