Putco matter postponed by Labour Court | Fin24
 
  • Data Market Inquiry

    MTN says it is prepared to defend itself before Competition Tribunal over report.

  • Claims of sabotage

    What we know so far about allegations of sabotage at an Eskom power station.

  • Dudu Myeni

    Court dismisses former SAA chiar's bid to have Outa withdraw from delinquency case.

Loading...

Putco matter postponed by Labour Court

Jun 30 2015 19:45
Thomas Hartleb, News24

Johannesburg – An application by Putco to have a new bus operator take over staff affected by its cancelled contracts was postponed by the Johannesburg Labour Court on Tuesday.

It would be heard on Thursday, Putco executive director Thys Heyns said.

“We are asking the court to give guidance on the matter,” he said.

About 330 people would be affected.  

The bus operator wants the Gauteng transport department and its new service provider, Autopax, to take over staff who worked on the cancelled contracts.

Earlier this year, Putco announced it had given the department notice in early February of its intention not to renew certain loss-making tender contracts after they expire on March 31.

Autopax CEO Nathi Khena told Eyewitness News of the affected Putco staff: “We are willing to take them on. What we are not willing to do is to take them with the burden and the responsibilities that were supposed to be dealt with with Putco.

“But we want to take them on as new employees.”

Putco said in a statement that the contracts were awarded in 1996 and were no longer financially sustainable. The increases in subsidies for bus contracts had been consistently lower than increases in cost items like fuel, labour, and maintenance.

The change would affect about 180 of Putco’s fleet of 1 900 buses.

The affected services are between Kathorus and Edenvale; Germiston, Linbro Park, Johannesburg, Boksburg and Kempton Park; between Evaton, Sebokeng, Orange Farm and Meyerton; and between Mamelodi and the Tshwane CBD, and Tshwane’s southern, eastern, and northern suburbs.

putco  |  transport
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
14 comments
Comments have been closed for this article.
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...