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ETC retrenchments a 'natural progression'

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 20 Oct 2014
ETC says retrenchments were planned when it initially employed 2 000 contract staff.
ETC says retrenchments were planned when it initially employed 2 000 contract staff.

Electronic Toll Collection (ETC), a service provider to the South African National Roads Agency (Sanral), has confirmed it is in the process of reducing staff that were hired on a temporary basis.

ETC was awarded a R6.2 billion contract to collect e-tolls on behalf of Sanral, and is 65% owned by the Austrian and Swedish arms of Kapsch TrafficCom.

The company says it hired more than 2 000 temporary staff members during the past four years. It is understood that 1 200 of these workers were issued with retrenchment notices recently. However, ETC would not comment on specific numbers, saying: "The number of retrenchments is dependent upon the subcontractor. We are not exactly sure how many staff would be affected, as the rationalisation process is ongoing."

Meanwhile, some of the affected workers briefly embarked on strike action on Friday, at ETC's complaints and administration centres, but returned to work shortly thereafter. ETC stated none of its operations had been affected and the subcontractor had dealt with the situation.

Jamie Surkont, CEO of ETC, points out, from the commencement of the project, it was decided the operational cost would need to be effectively managed. As such, he says, the contract called for the reduction in number of staff and the closure of temporary structures and services when the "steady state" phase was reached.

Aligning with lifecycle

As an operator, he explained, it is important for ETC to align with the lifecycle planning of the Gauteng e-toll project, adding it has thus been necessary for ETC to perform different services during the different phases of the project.

Surkont states the project required an increase in staff during its registration phase, and now requires a reduction in staff and the closure of temporary structures and services, in its current steady state. "The retrenchments that are taking place were planned for and are part of the natural progression of any project," he says.

"All staff members, whether temporary or permanent, are valued by the company. For this reason, and from the time the project commenced, we have focused on providing temporary staff members with training and other work-related skills that would put them in good stead for their future careers," says Surkont.

The company says it also has a conversion process that has been actively running for several months and to date this has seen over 560 temporary employees converted to ETC contracts. The rationalisation process is expected to wrap up in December.

Last week, Sanral emphatically denied it was cutting jobs, after the Congress of South African Trade Unions alleged the roads agency issued retrenchment notices to its staff.

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