Sustainability Report 2012 - Transnet

Main area ofStakeholder group How Transnet engages stakeholder concernEmployees, labour Strategic leadership Dignity and respect.unions and pensioners forum. Safety. Transnet Training and skillsRestructuringdevelopment.Committee. Remuneration. National BusinessCommittees. Culture. Local Business Queries from formerCommittees.employees onwhether they qualify Internet/intranet.for pensions. Memoranda from In November 2010,the GCE.the Portfolio Culture CharterCommittee on Publicchampions.Enterprises Correspondence withrecommended thatpensioners and fundcertain enhancedadministrators.benefits beimplemented for the Engagement with the pensioners of thePortfolio Committee Transnet Secondon Public Enterprises Defined Benefittogether withFund and thedefined benefitTransnet Sub-Fundpension funds.of the TransportPension Fundcomprising thepayment of fivemonths’ pensionbenefits as a bonus,an uplift of the basepensions andCPI-linked increases,targeting 75%of CPI.Transnet’s response Investing inemployee safety anddevelopment. Maintaining aperformance systemthat supportscontinuousimprovement. Informing employeesof key strategicinitiatives, policiesand procedures thatimpact theworkforce. Social responsibilityand reputationmanagement. Both funds haveprovided bonuses totheir pensioners offive months’ pensionbenefits. Neitherfund will implementa base uplift, as thisis tantamount toadjusting the salaryof employees at dateof retirement, andnot within the ambitof the funds. Bothfunds, which havead hoc bonus rules,will seek to payannual bonuses totheir pensioners thatresult in an annualincrease in pensionreceived linkedto CPI.What Transnet hopesto achieve Increase in labourproductivity todeliver on volumegrowth and MDStargets. Labour stability tosupport strategyexecution andcompetitiveness ofSouth Africa’sfreight logisticssystem. Building unionrelationships tosupport labourstability. Collaboration withorganised labour toensure businesssuccess.Sustainability performance: Social dividendsSustainability Report 201263