Union hurdle for arivia disposal

Johannesburg, 15 May 2006

Talks between Transnet and four trade unions representing the organisation`s employees could be one of the hurdles in Transnet`s disinvestment from state IT group arivia.kom.

Transnet`s proposed disinvestment from its non-core assets (which include arivia.kom) is cited as one of the "critical differences" in the labour dispute between Transnet and the unions, according to a statement from Transnet communications GM John Dludlu.

Last year, public enterprises minister Alec Erwin announced that state-owned enterprises would divest or transfer their non-core assets, in order to focus on core business and reduce borrowings.

Transnet established the Strategic Leadership Forum (SLF) in late March to try resolve the dispute. It was also mandated to address the issues of non-core asset disposal and core-asset reorganisation, says Dludlu.

"The work of the SLF is ongoing - we`ll comment further at the appropriate time," he adds.

Under the leadership of Transnet CE Maria Ramos, the SLF agreed to establish three task teams, with joint labour-management representation.

"Transnet has pledged not to undertake any unilateral decisions on the disputed issues until the next SLF meeting," notes Dludlu in the statement, though he declined to indicate when the next SLF meeting would be. He said one of the terms of the agreement with the unions was that no comment would be made about the dispute resolution process.

Almost half of Denel`s 23% shareholding in arivia.kom was transferred to Transnet early last month, meaning Transnet now has 54.71% stake in the IT group, with Eskom holding 45.29%.