Moneyweb reports that trade unions have welcomed the decision by Transport Minister Fikile Mbalula to dissolve the board of the Passenger Rail Agency of SA (Prasa) and place it under administration with immediate effect.  

Economists said Mbalula did not have any other option but to take action to address the serious issues confronting Prasa, which provides employment to 16,350 people.  Bongisizwe Mpondo, who has served on the boards of many public entities, including SAA, has been appointed administrator with immediate effect.  He will run Prasa’s affairs as a board of control.  Zanele Sabela of the SA Transport and Allied Workers’ Union (Satawu) said they welcomed Mbalula’s move because there was a crisis at Prasa.  She said there would be a meeting between the unions and the administrator in January and that Satawu was looking forward to it so it could provide meaningful input into what happened next at Prasa.  She added that Satawu was ultimately concerned about its members’ job security, which was the reason the union was insistent that it had a seat at the table at the January meeting.  Steve Harris of the United National Transport Union (Untu) commended Mbalula for his bold actions and indicated that Untu would support and contribute to the efforts made to ensure the 14,000 jobs provided by Prasa were not affected.  Harris said it was critical that Prasa employees were paid at the end of this month and that immediate measures were implemented to ensure employees were safe at work.

• Read the full original of the report in the above regard by Roy Cokayne at Moneyweb
• Read too, Transport minister’s Prasa decision widely applauded, at The Citizen

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