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TO: ALL EXECUTIVE COUNCIL MEMBERS AND TUR'S Management has had three meetings with Labour with regards to changing the Incentive Bonus which has been paid once a year in the past on condition that Transnet achieved its financial objectives as well a particular operating division had also achieved the required financial objectives. Labour was very perturbed and requested management to engage on negotiations with in the Transnet Bargaining Council. Transnet Management has been adamant that Incentive Bonus is not a right and is thus not negotiable and thus Transnet was only willing to consult on this matter. Some of the changes to the new Incentive scheme are as follows:- Ø The payment will not be paid annually however payment will now be paid quarterly providing the operating division has achieved its financial goals for that specific quarter. Ø The operating profit will be replaced with EBITDA (earnings before interest, tax, depreciation and amortization) as main value driver and the secondary value drivers will vary dependant on operating divisions specific measures e.g. volumes. Ø The rules of the new incentive scheme have not been finalized however on receipt thereof they will be disseminated to our members and representatives. Where applicable the incentive now reduced from 9% to 6% will be paid quarterly while stretch incentive of up to 16% will be paid annually where applicable and relevant. With regard to Transnet Port Terminals more specifically those Terminals such as Durban Container terminals will have a choice to remain on the current incentive scheme or they could move across to the new incentive scheme but will not be able to fully participate in both incentive schemes. Transnet Rail Engineering’s current gain sharing system will continue as it is because it is a collective agreement and it could only be changed via negotiations in the particular operating division. The rest of the operation divisions will participate in the new scheme. Attached please find the last presentation presented to Labour. Management indicated that the various operating divisions will meet with Labour to determine the operating divisions specific measures and inclusive of how they intend rolling out the new scheme. Be assured that Labour more specifically UTATU did make alternate proposals however Transnet did not accept them and informed Labour on 24 October 2008 that they will now continue and unilaterally implement the new scheme back dated to 1 April 2008. UTATU Greetings.
UTATU Greetings. STEVE HARRIS Ref: CL/BON.001/sh/mk - 2008-10-30 |
