Fin24 reports that voluntary severance packages (VSPs) have been proposed to union members at the Passenger Rail Agency of SA (Prasa), as the state-owned entity faces a rapidly deteriorating financial position during the coronavirus pandemic.  

In a letter addressed to the National Union of Metalworkers of SA’s (Numsa’s) Irvin Jim, the agency's administrator Bongisizwe Mpondo requested consultations on VSPs, citing the "deteriorating financial position over the last few years, exacerbated by the Covid-19 pandemic".  He added:  "The further financial constraints that have arisen as a result of this pandemic have caused us to closely re-examine Prasa's situation.  Among other efforts that are being made to reduce our operating costs, we believe that a smaller workforce may be one step towards maintaining a viable entity in this uncertain economic climate."  The state-owned rail and bus operator has about 17,000 employees.  The United Transport National Union (Untu), which is the majority union at Prasa, confirmed the consultation notice issued by the administrator.  Spokesperson Sonja Carstens said a meeting between unions and the agency had been set down for 7 May.  "We were quite taken by surprise and disappointed by the letter, given that the administrator was brought in to stabilise Prasa, but it seems like jobs are now on the line.  It is unfortunate," said Carstens.

• Read the full original of the report in the above regard by Marelise van der Merwe & Sibongile Khumalo at Fin24

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