EThekwini Municipality has begun processing payments into the verified bank accounts of Tansnat employees, after the company failed to pay them their December salaries and bonuses.
As of today, 05 January 2016, about 238 Tansnat employees have been paid directly by the City. The remaining employees will be paid once the verification process has been finalised.
The money used to pay salaries and bonuses will be recovered from Tansnat, the company tasked with running the City’s bus service while the City continues with the process of forming a Municipal Entity for the running of the service.
Last week, the Municipality intervened to prevent a strike by the bus drivers and resolved to pay employees, excluding management, directly.
However, while the City was busy verifying employees’ names and bank accounts, bus drivers parked buses in the road on Monday, 04/01/2015 blocking major access routes into the City and parts of the City Centre. The Municipality strongly condemned their actions and appealed for calm as the issue pertaining to unpaid salaries and bonuses was being addressed.
Mayor James Nxumalo said the City was concerned about the negative impact the non-payment of salaries and bonuses had on the employees and commuters who rely on the bus service.
“Some employees have received their salaries and bonuses and we are confident that the bus service will resume as soon as the verification process is fanalised and payment delays have been resolved fully,” Nxumalo said.
The agreement signed with Tansnat last week stipulated the following conditions:
- The City will pay employees directly and not transfer money to Tansnat for bonuses and December salary.
- Tansnat should open a separate bank account for the bus service and the City will have oversight of how the funds are managed.
- Tansnat has to draw up a repayment plan detailing how it would pay back the money it owes the City.
The City’s liquidation court application against Tansnat continues.
The Municipality apologises to commuters for the inconvenience caused.
We advise commuters to plan their journeys accordingly using alternative transport arrangements.
The Municipality will communicate all updated information about the bus strike through all media platforms. Commuters will be informed once the bus service is fully restored.
